From a Yahoo! article I read this morning:
“Rather than creating wealth, homes had enabled people to gain cash by refinancing mortgages and live beyond their means until the crisis sent them into bankruptcy.”
You can find the article here:
How can I explain this? If there was money to pull out then the house created wealth. Just because some home owner decides to spend it on a SUV and a Bahamas Cruise rather than leave it for their future… Jeez.