Friday, March 7, 2008

Sums it up

And this is why our country is in trouble right now:

"People were relying on home equity to maintain consumption. They can't keep doing that once the equity's gone," said Dean Baker, co-director at the Center of Economic Policy Research. "Undoubtedly, this is one reason for the falloff in consumption in last couple of months."

Home equity fueled spending. Pure insanity.

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