A couple earning $60K/year ($5K/month x 12) back in 1997-98 would spend $1,100/month (22% of $5K) on just their mortgage. Fast forward to today and that same couple would now be spending $2,250/month (45% of $5K), an increase of $1,150/month! Where's that money going? Banks? Realtors? Contractors? Retail? Others? All of the above? It seems like this extra amount is what has kept our economy raging ahead for the past 7-10 years, and it seems to be predicated on a well-oiled production/consumption machine. The problem that we are seeing is that the machine is losing oil and is showing signs of malfunction.
