Ultimately, we are in the biggest credit contraction ever

SHOOT: Something we seem to keep forgetting.

clipped from www.theoildrum.com A few graphs could tell them all they need to know, like the number of residential mortgage resets still outstanding... Or that almost one quarter of homeowners owe more than their home is worth. They won't feel rich and they aren't going to spend. Plus, historically, when equity reaches less than 80% of the value of the home, walkaways increase dramatically, which further depresses housing prices. Haven't even mentioned commercial real estate or the debt to GDP level or the crashing M3 or any number of other measures that indicate we are in the early stages of a deflationary spiral. Because, ultimately, we are in the biggest credit contraction ever...