Those clever Republicans sure do know economics. As long as you close your eyes and just listen to them talk, everything will be fine and the market is working. When the GOP stripped the system of decades old common sense it fell apart. Phil Gramm, McCain's co-chair and architect of this new system, says that he never saw this coming. Is this supposed to be the "experience" that McCain is touting? It's not very impressive experience, is it?
The equity Americans have in their most important asset — their homes — has dropped to its lowest level since the end of World War II.
Homeowners’ portion of equity slipped to 46.2 percent in the first quarter from a revised 47.5 percent in the previous quarter. That was the fifth quarter in a row below the 50 percent mark, the Federal Reserve said Thursday.
The total dollar value of equity also fell for the fourth straight quarter to $9.12 trillion from $9.52 trillion in the fourth quarter, while Americans’ total mortgage debt rose to $10.6 trillion from $10.53 trillion.
A homeowner’s equity is the market value of a property minus the mortgage debt. And homeowners’ percentage of equity has declined steadily even as home values surged during the housing boom due to a jump in cash-out refinancing, home equity loans and an increase in 100 percent financing.
