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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: russwinter who wrote (12949)10/6/2004 8:21:33 PM
From: GraceZ  Read Replies (1) of 116555
 
Undoubtedly some people take out HELOCs to pay off past consumption. I've never disputed that.

But what I'm really curious about is if anyone here on this thread can answer the questions I had earlier about the data source for the "equity extraction" chart in the Northern Trust PDF.

What is the data source used to come up with 300 billion dollar equity extraction?

How is it calculated?

Is it total housing values minus loans? If so how are housing values arrived at? How is paydown accounted for?

Is it saying that, in total, there is 300 billion less in housing equity than when the chart read zero? If so I'd really like to examine the data source making that claim. Are amounts converted to constant dollars?

Is it total amounts of cashout plus home equity loans over the period covered by the chart?

If so does it take into account that home equity loans are used for improvements which add to equity? and how could that amount be determined?

People seem to think I'm overly Polyanna and naive to question the chart.... yet, I'm wondering why I'm the only one questioning it. Shouldn't all economic charts be subject to scrutiny?

(sorry, if I missed someone else's post who might have raised questions about it).
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