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I totally think we haven't seen the end of the fallout from the housing bubble, and this is why. I think it's quite likely to affect consumer spending and the broader economy, and not only because of people not being able to borrow as much. I think there's also a psychological/confidence element: If you realize one day that your house has lost a big chunk of its value, it's going to make you feel poorer, and you'll probably spend less.


I'm already at that point, and it's not just psychological--I've been tracking housing prices for a few years and I will probably get what I paid for the house 6 years ago. I never touched my equity, so at least I have some wiggle room. But I am just pissed.


I totally agree with Polly. I am thinking it will be in 2011 in most of the big markets. The house as ATM is a terrible mind-set. I am stunned at how many boomers did that AND planned to use their house to fund their retirement!!

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