Jim in San Marcos borrows and discusses a chart showing homeowners' equity. As residential property prices drop, more borrowers move into negative equity. He says bank-owned properties (REOs) are already pricing-in a fall of 30%+.
"Examine the disappearing equity. It came from no where and is going back to no where."
That's what happens when credit becomes a form of currency, as the bullion moralists keep reminding us.
Why are banks allowed to create so much "fiduciary money"? Who does own the Fed?