Yes, the money is truly gone. I think this article is probably the most relevant of all the recent economic news. There is just no hard data on how much of our economy (not just the housing based money) was truly based on home equity. This is the story of the death of so many small businesses, most people just don't realize it yet. Oh well, I guess it's only the Walmarts of the world that will survive. Much of this money masked the realities of how difficult it is for the little guy to compete. A friend's mother is trying to get a reverse mortgage right now to keep her business alive, she will be living with my friend before it's all over, dreams die hard. I really wonder how much money these businesses actually made when you take into account the massive amount of HELOC money they used to finance them. The hardest part of this whole thing is that we have a few generations who honestly believe that a house is an ATM and they've raised their kids to believe this. Most think that this is a passing phase and all will return to normal soon. I watched my parents do exactly the same thing, it just doesn't turn out well.
