Cyphire I routinely check some of the higher end homes in my area with regards to recorded mortgages… The data supports the facts that the majority of long time homeowners indeed did not pull out money. I find that the less established homeowners are by far more aggressive in refinancing and pulling money out. I also see more aggressive (aka financially poor) decisions made by relatively less seasoned homeowners in newer purchases. (those made within the last 7 years)
I am not saying this will alter the downward spiral. I am saying that the fiscal irresponsibility is not predominant among older individuals with alot of equity in their home. They tend to buy their toys with cash rather then pulling out equity.