This NYT follow-up tries to make sense of the statistics, and explains some of the biases in them. Still, I’m not satisfied with any of the answers given, because it doesn’t explain the big discrepancy between the index and actual valuations.

““Unfortunately, there are also a lot of families that took on huge mortgage debts based on the ephemeral peak values of their properties. In effect, they cashed in on the housing boom without cashing out. The withdrawals have been so big that the average household in Boston now has slightly less equity in its home than it did in 2000, according to an analysis by Moody’s that took inflation into account.”

“Most worrisome, growing numbers of these families are falling behind on their mortgage payments, and they won’t be able to bail themselves out by refinancing or selling their homes. ‘We’re now going to combine a high amount of debt with falling home values,’ said economist Mark Zandi.” ”

This is from one of the NYT stories. Soon, we can substitute San Diego for Boston.

BTW, those waiting for my website, I was advised that I should incorporate, but for tax reasons, to do so effective January 1. (Incorporating is for legal protection, esp. since I will have forecasts and someone could sue me.) So I can go live with my site right after the New Year. I will not be competing with piggington. I remain a piggingtonian, always, and owe my discovery of the housing bubble to Rich Toscano.