Subprime Mortage Meltdown and Consumer Demand

Greenspan, Alan and James E. Kennedy. 2005. “Estimates of Home Mortgage Originations, Repayments, and Debt on One-to-Four-Family Residences.” FEDS Paper No. 2005-41 (September).

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=874821#PaperDownload

Table 1: They estimate that by 2004, that net equity extraction (subtracting closing costs) represented 6.92% of disposable income.

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