The Scourge of Negativity Equity

Reading about the mortgage modification marathons in the States, what's striking is how much individuals trying to save their homes have lost and how little their homes are now worth. A drop from $160,000 to $60,000 says one, and $115,000 in 2004, to $42,000 now says another.

In Vancouver, $42,000 wouldn't buy you anything worth striving to save - maybe a cardboard box under a road bridge.

Also noteworthy, that Florida - where real estate and tourism are centrifugal forces in the state economy - almost has as much debt as real estate assets.

"About 45% of homes here are in negative equity, according to CoreLogic, a research firm, which calculates that Florida's stock of property is worth $859bn but has $771bn of mortgage debt outstanding."

Not a happy picture at all.