Chart of the Week: Home Equity Cash Outs

Our discussion of Credit Card usage leads us review this:
Since 2000, American households have spent more than they earned – a shift from
the prior 3 decades. Q3 2005 household spending was a record $531 billion more
than their after-tax earnings (annualized). Consumer spending was 76% of Q3 GDP
- a record high, up from 73% in 2000.

Home Equity Cash Outs; Bank Mortgage assets as a % of total assets

Cahs_out_refis

Source: NYT

Residential real estate is a record 204 percent of
disposable personal income, compared with 150 percent in 2000.

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