In 2006 Q4, refi's, home-equity loans etc. accounted for 17% of Californians' disposable income

[El Pinko]

http://www.sacbee.com/103/story/718365.html

Downturn takes a toll on Golden State fortunes
Any recession likely to hit harder here
By Dale Kasler - [e-mail]
Published 12:00 am PST Sunday, February 17, 2008

....

The world's eighth-largest economy is prone to severe peaks and valleys. It soars higher when the financial climate is good – and falls more spectacularly when the nation struggles. Already the real estate meltdown is causing more damage in California than practically anywhere else.

"I think you can safely say if the nation goes into a recession, we're going to have a rougher time," said Howard Roth, chief economist at the state Department of Finance. "The job growth is slowing faster here. We're taking a bigger beating in the housing slump."

....

Statistics from the federal Home Mortgage Disclosure Act show about 24 percent of all the subprime mortgage dollars loaned in the United States in 2006 were in California, setting the stage for an epidemic of foreclosures.
....

In the fourth quarter of 2006, so-called equity extractions – from refinancing, home-equity loans or outright sales – accounted for about 17 percent of Californians' disposable income, according to statistics compiled by Scott Hoyt, the director of consumer economics at Economy.com. That was about twice the U.S. average. Only in Arizona and Nevada did homeowners depend more on home equity for cash.

[hatrack]

1. Eye-opener from January - in Stockton, as many houses were foreclosed or repo'ed as were bought

And that was just the first of twelve exciting months we have to look forward to in 2008.

:eyes: