No equity in America

This is crazy.

Home equity slips below 50%

NEW YORK (AP) -- Americans' percentage of equity in their homes has fallen below 50 percent for the first time on record since 1945, the Federal Reserve said Thursday.

Homeowners' percentage of equity slipped to a revised lower 49.6% in the second quarter of 2007, the central bank reported in its quarterly U.S. Flow of Funds Accounts, and declined further to 47.9% in the fourth quarter - the third straight quarter it was under 50%. That marks the first time homeowners' debt on their houses exceeds their equity since the Fed started tracking the data in 1945.

Ouch. That's a scary reality.

In fairness, I have no equity in my home. In my defense, I closed on it less than a week ago. I hope to have a different outlook 10 years from now.

If this continues, we're in for a real economic treat...