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According to Bloomberg News, home equity extraction is expected to DECLINE $126 billion from $243 billion down to $117 billion in 2006. This would be a 52% decline, and a 52% decline in consumer spending power. This source of spending is nearly equal to all of our spending growth. With a 52% reduction in consumer spending power, spending would also decline 52%. If 2006 consumer spending remains 2/3 of of economic activity (and GDP), it would reduce our GDP growth by the same 52%. A 52% reduction in this year's 3.2% GDP growth would leave a 2006 GDP growth of only 1.54%.
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A 52% decline in home equity extraction would 52% of 66.7% reduction in consumer spending power, not 52% of 100%.
That's a 34.7% decline in consumer spending power not 52%. 
Still and all, not good.
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The descent of man ~ Nixon, Friedman, Reagan, Trump.
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