The chart below depicts annual growth in mortgage debt as
well as real estate assets, and on the right axis shows owners’ equity as a
percent of real estate assets.

Annual Growth: Mortgage Debt, Real Estate, Owner Equity
click for larger chart


Source: Barrons’ Econoday

Since 1980, this ratio has dropped significantly. As debt
has risen, owners equity has dropped – despite the increase in Real Estate
Values. Barron’s states this means that “consumers have used their wealth to
pay for the spending spree of the past several years.” This shows how leveraged
the economy has become. Those “counting on a continuation of the boom in real
estate prices continuing may be in for a disappointment.”


Random Items:

finds deep retirement denial

to Pick the Tech Winners

Energy Outlook

ads make a comeback

you whistle a happy tune, don’t call it a jingle

top 10 greatest inventions


of the Day:

"When you arrive at your future, will you blame your

~ Robert Half



Category: Markets, Real Estate


Category: Weblogs

A Few Interesting Things

Category: Economy, Film, Music, Psychology

2005 Q1 Performance

Category: Markets

Pick Two

Category: Investing, Psychology

Uh-Oh: Greenspan’s an Oil Bear

Category: Commodities, Economy

What Record Industry Slump?

Category: Finance, Music

1,000,000 Hits!

Category: Weblogs

Mystery of the Awful Economists, part 2

Category: Commodities, Economy

Panasonic DVD-R: $199

Category: Film, Television, Web/Tech