Where did all the money go?

Since it has been everywhere since last night, I will just chime in. Here are some of the headlines -

Reports: American households getting poorer - USA Today

Americans' home equity lowest since 1945 - Philadelphia Inquirer

Federal Reserve: Homeowner Equity Falls Below 50% - Fox Business

Federal Reserve Report Shows Homeowner Equity Dipping Below 50 Percent, the Lowest on Record - Yahoo

Some key points from the Yahoo article

That marks the first time homeowners' debt on their houses exceeds their equity since the Fed started tracking the data in 1945.

Home equity, which is equal to the percentage of a home's market value minus mortgage-related debt, has steadily decreased even as home prices jumped earlier this decade due to a surge in cash-out refinances, home equity loans and lines of credit and an increase in 100 percent or more home financing.

Underwater with the spigots off - what will the homedebtors do now?