At Peak 5.5% of the Economy
Sometimes it amazes me how differently I interpret something compared to someone else. This is a comment I read on Mish's blog today:
"The truth is that there's a touch of hysteria to much current economic commentary that is, as yet, unjustified by what's actually happened to the economy. Yes, the housing slump is vicious, but at its peak, housing was only 5.5 percent of the economy, and the present slump is still only the fourth-worst since World War II."
If housing is "only 5.5%" of the economy, how come it takes 30-50% of your income for 30 years to pay for it?