I feel that the economy is in a better position than it was one year ago.
But I assumed it would get better so I don't necessarily feel better about the economy than I did a year ago.
Real estate which was the biggest contributor to the problem is still in a tough spot.
Even with prices dropping, about 1/4 of all mortgages are still under water.
For those that can afford their payments and plan to stay fo a while that is not much of an issue although they don't have equity to borrow from for home repairs/improvements.
Then there are those that are still looming foreclosures.
Some cannot afford their mortgage. Some will soon be hit with a reset higher payment. Some want/need to move but can't. And refinacing is not available to these people.
This is the same as a year ago.
The catch-22 is that home values need to rise to put these folks in a better position but also home values need to drop so more people can afford to buy homes under realistic borrowing terms.
A lot of wealth has been lost. Fortunately I think people are adjusting to the new reality. Housing will still be a big issue for a while for the average person unless the banks want to re-write everyone's mortgage and write-off a ton of principle.