People were supplementing their disposible income to the tune of 5% to 9% during the housing bubble.  This means $400 billion to $800 billion of annual spending that occurred from 2002 – 2007 has now been withdrawn from the economy.

Mortage Equity Withdrawal

Job losses haven’t gotten as bad as the early eighties yet, but it looks like we will make a go of it in a few months.

Job Losses

In the following graph the dotted lines are maximum and minimum historical production values during recessions post world war II.

Industrial Production

Housing still has more to fall.


Price Rent