6. The housing crisis deepens. New home sales in July 2008 were 35.3% lower than a year earlier, and existing home sales were 13.2% lower. The median price for existing homes had fallen by 7.1% and prices for new homes by 6.3% from July 2007 to July 2008.

7. Homeowners lose wealth. The values of all homes fell by 2.5%, or $417 billion, in the first quarter of 2007 after accounting for inflation—the largest drop since the second quarter of 1974. Home equity as share of home values also fell to a record low of 46.2% in the first quarter of 2008.

9. Mortgage troubles mount. One in 11 mortgages is delinquent or in foreclosure. In the second quarter of 2008, the share of mortgages that were delinquent was 6.4%, and the share of mortgages that were in foreclosure was 2.7%. The share of new mortgages going into foreclosure continues to reach new record highs with 1.1% in the second quarter.

That graph is scary.

The labor market recession is deepening and continues to threaten economic growth. Eight months of job losses were paired this month with an increase in the unemployment rate to its highest level in five years. This year’s job losses follow a very weak labor market that has left families woefully and inadequately prepared for the current crisis. Employment growth has been the weakest since the Great Depression, wages have been flat, and benefits have been declining since this business cycle started in March 2001.

At the same time, prices have risen for many items. This combination of higher prices and less income has driven families deeper into debt. As the labor market slump heightens, more and more families are succumbing to the pressures, declaring bankruptcy, and defaulting on their loans. Yet easing the burden on families will not be easy, since massive trade deficits are draining our national resources and budget deficits due to tax cuts for the rich are posing obstacles to real solutions for America’s families.