The $7 Trillion Hole in the Economy
Would you be tightening your belt if your house had dropped $50k-$60k in value in the last four years?
And if you’d taken out a home equity loan against your home when it was worth $50k-$60k more . . . almost definitely.
Now, take that $50k-$$60k drop in home equity, and multiply that by . . . . every homeowner in the country.
Yup, that’s how much the average homeowner is down since 2006 ($54k per home, to be precise).
That equates to a national average 30% drop in home prices from the peak, or over $7 trillion in shrunken home values.
Hmmm . . . could be that that something to do with the not-so-robust economy (at least away from Wall Street).