Illusion of Prosperity: Home Equity vs. Debt

Monday, September 26, 2011

Click to enlarge.

Click to enlarge.

These exponential trends are not our friends.

Source Data:
St. Louis Fed: Home Equity to Household Debt
St. Louis Fed: Home Equity to Total Debt

Mr Slippery said...: Last time I checked, the difference between mortgage debt and the value of the property secured by mortgages was about $6 trillion. Those are real losses that someone is going to have to take: either a bank, a homeowner, or the government through FNMA/FHMC/FHA/VHA.

It's going to take me years to pay down my part of it, not counting what the government dumps on me.; September 26, 2011 at 4:45 PM
Stagflationary Mark said...: Mr Slippery,

Removing all the homes that have been paid off in full would certainly make the remaining data all that much scarier.; September 26, 2011 at 4:51 PM
Troy said...: here's me graph for that

http://research.stlouisfed.org/fred2/graph/?g=2s4; September 26, 2011 at 8:30 PM
Troy said...: (. . . much scarier I means); September 26, 2011 at 8:31 PM
Stagflationary Mark said...: I have fantastic news.

I helped the economy out big time today.

I saw the dentist to fix my broken crown. I'll also be helping the economy again in about 6 weeks to put the new crown in.

Woohoo! Sigh. ;); September 26, 2011 at 8:32 PM

Illusion of Prosperity