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Depending on whose numbers you use, home equity in the U.S. contributed to approximately $300 billion of annual consumer spending prior to 2006. By the fourth quarter of 2007, that number was roughly cut in half and by early 2008 it was down in the $50 billion range.

The progressive rhetoric has been "not to worry" as it was anticipated that increased jobs and incomes would compensate for this loss in consumer spending caused by shrinking, or totally disappearing, home equities.

That didn't happen and now, obviously, it isn't happening; despite the huge numbers of hopeful Americans that thought it would when they voted for "change" in the presidential election.

So what now? Home equity was not just a "fall back" source for living expenses. Home equities provided consumers with a way to finance education costs, emergency medical needs, retirement, and much more.

This situation makes it absolutely imperative for homeowners to, at least, take the necessary steps to protect their home ownership before they are "forced" to lose that as well.

- Ed Smith, Publisher
The EHS Letter Manual