Home prices haven't been going up in over a year, and new sub-prime loans haven't been made on a regular basis for the past 6 months, so the "use your house as an ATM by refinancing" angle has been squashed for months or longer.
...yet our GDP has grown considerably in spite of said ATM theory not being in play.
Salaries are up. Employment is up. Productivity is up. Thus, so too is our overall economy.
Take $200 Billion out of our $12 Trillion GDP and that's where we'll be mid-2008.
With stocks on a downturn, you can never pay too much, just buy too soon ;)