I belive the graph is showing that US use to have equity in there homes but now in negative teritory ie owe more than market value AND THIS IS THE PROBLEM If govs dont inflate there way out of this were going to send all the baby boomers broke, not that i have a real problem with them paying for there sins but i dont want myself or my children to have to pick the peices and support them through there twylight years I am no finacial expert but here is what I see Old man river has done pretty well and has put 2 apples away for retirement all be it 1 slice inflated to 2 and he owes the bank 1 apple(because you cant make money with out gearing in his mindset)so do you let prices fall back to the 1 apple and make him a burdon on the rest of society or infate things and keep him self supporting even if his 1 apple of equity will only buy him half as much bet it sounds better than the alternative for him.Back to me yes every thing will cost me more but ill earn more so life continues as normal the hole problem is that official inflation rates dont seem to be linked to property inflation allowing these booms and busts, one property i owned tripled in price in 3 years good for me but someone always has to pay
