The housing bubble continues to deflate. As the deflation continues, so too, do the hopes of 99 percent of the American people.
The housing bubble history is interesting, mainly because that bubble began during the Clinton regime, around 1993, or so. By 2003, the bubble was huge, but according to the US Census Bureau, all home equity had been spent. That tells you one thing. The housing bubble covered up the massive redistribution of income and wealth from working people to the rich during the Clinton regime. The wages and salaries of working people didn’t keep up with the always underrated inflation rate. Spending the growing home equity was the way to continue their life style, even if it meant getting into progressively more debt with home equity credit lines and 2nd and 3rd mortgages and refinancing their homes at the growing, higher levels. The same process accelerated under the Bush regime. And all of the equity had been spent because the Bush regime continued to redistribute income away from working people to the affluent, just as had occurred under President’s Ronald Reagan, Clinton and Bush I.
John Hively's Blog: News and Analysis of the War Against the Middle Class 