Homeowner Equity Is Lowest Since 1945
NEW YORK (AP) -- Americans' percentage of equity in their homes fell below 50 percent for the first time on record since 1945, the Federal Reserve said Thursday.
Homeowners' portion of equity slipped to downwardly revised 49.6 percent in the second quarter of 2007, the central bank reported in its quarterly U.S. Flow of Funds Accounts, and declined further to 47.9 percent in the fourth quarter -- the third straight quarter it was under 50 percent.
That marks the first time homeowners' debt on their houses exceeds their equity since the Fed started tracking the data in 1945...
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Nothing new. If you are not prepared by now, then I assume you don't think anyting truly bad is going to happen in the markets or the economy in general. Here's hoping you are right.
The markets are strangely quiet on wave after wave of absolutely horrible "fundamentals" (another reason I find technical analysis far superior to "fundamental" analysis when examining equities and bonds). I wouldn't be surprised at all if we see a massive short squeeze that takes the DJIA over 13,000 - but I ain't betting on it.
When the floor gives out under the market, it is going to be a long drop to a sustainable level.