As of the second quarter of 2007 it passed a mile-stone, with the percentage of equity Americans have in their homes falling below 50 percent for the first time since 1945 according to the Federal Reserve. It has fallen below 45 percent since then and continues to fall at a rapid rate today.
In 2003, lending for single family homes was $3.9 trillion. In 2008 it was half that amount, according the Mortgage Bankers Association.
However, when the dollar bubble pops, we will most definitely have a massive credit crunch. Very few businesses or individuals will be able to get loans at that point. More importantly, not long after the dollar bubble pops, the massive government debt bubble will burst and the U.S. government will no longer be able to get any credit either.