Masking the health of the economy

With so much focus today on the soaring home prices and how they are the foundation of the American economy, I found this article on Slate about mortgage default rates interesting. There are many contradictory indicators on the health of the US economy. Strong growth in consumer markets and home equity valuations have to be balanced against massive consumer and war waging deficits, soaring health care costs and the ever increasing wealth gap. If the mortgage companies are indeed being much more forgiving of bad debts then one of the few indicators of the strength of the economy may be in doubt, which is worrisome for everyone.