homedebtor n. A homeowner with an extremely large mortgage, particularly one that he or she is unlikely to ever pay off.
Unfortunately, for many people the word homedebtor is a more accurate word than homeowner. It refers to those people who are living in houses with "no skin in the game," little or no equity, and a mortgage they are not likely to repay, and may possibly not be able to afford.
Homedebtor (a.k.a. "recent homebuyer") is alsi defined thusly: Perpetual debtor/serf who will
probably never own the home outright, thanks to cyclical refinancing
(used to fund conspicuous consumption) and property taxes. —Patrick Killelea, "Housing Bubble Glossary," Patrick.net, August 12, 2005
In the end, millions of homedebtors will lose their homes, the homes they told everyone they "owned", the homes everyone told them would "be a great investment".
—Bruce D. Stewart, "US foreclosure rate soars 43%," belairhomesforsale.com, November 2, 2006
WordSpy, April 16, 2008
Former U.S. Treasury Secretary Paul O’Neill discusses the U.S. economy and global financial markets, the performance of the U.S. dollar versus other currencies, and the Federal Reserve’s response to the mortgage and credit crisis.
Former Treasury Secretary Paul O’Neill"
The "strong dollar” policy that he and every other Treasury chief since 1995 endorsed is "a vacuous notion.”
"It implies in it that somehow we have the ability to manage the relationship between the value of the U.S. dollar and other currencies around the world,” O’Neill, now a special adviser to Blackstone Group LP, today said in an interview with Bloomberg Television.
O’Neill roiled currency markets when he was in office from 2001 to 2002, at one point with comments in an interview with a German newspaper that the U.S. pursued a policy of a strong economy, rather than currency. The current Treasury Secretary, Henry Paulson, has repeatedly stated that he is a "very strong” supporter of the "strong dollar” policy.
"When I was Secretary of the Treasury I was not supposed to say anything but ‘strong dollar, strong dollar,”’ O’Neill said today. "I argued then and would argue now that the idea of a strong dollar policy is a vacuous notion.”
The U.S. currency today fell to a record low against the euro, and has declined 15 percent against its European counterpart in the past year.
O’Neill Says U.S. `Strong Dollar’ Policy Is `Vacuous Notion’
Rhonda Schaffler and John Brinsley
Bloomberg, April 16 2008
O’Neill Says Strong Dollar Policy Is `Vacuous Notion’
Bloomberg, April 16 2008
An article on humongous hedge fund paydays in today’s NYTimes was quite interesting: “The richest hedge fund managers keep getting richer — fast. To make it into the top 25 of Alpha’s list, the industry standard for hedge fund pay, a manager needed to earn at least $360 million last year, more than 18 times…Read More