The Big Picture

The Big Picture: "A study (supposedly co-authored by Fed Chair Alan Greenspan) estimated that 'Americans withdrew $600 billion in equity from their homes in 2004, or 7% of their disposable income.' Greenie's study estimated 'consumers spend about 51% of the cash they extract.' Goldman's estimates were that consumers spend ~68% of the cash they extract through home-equity loans and refinancing (most of the rest is used to pay down credit-card debt or invest)."