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Now the bill is coming due. As the housing market spirals downward, home equity loans, which turn home sweet home into cash sweet cash, are becoming the next flash point in the mortgage crisis.

Americans owe a staggering $1.1 trillion on home equity loans — and banks are increasingly worried they may not get some of that money back.

To get it, many lenders are taking the extraordinary step of preventing some people from selling their homes or refinancing their mortgages unless they pay off all or part of their home equity loans first. In the past, when home prices were not falling, lenders did not resort to these measures.

Such tactics are impeding efforts by policy makers to help struggling homeowners get easier terms on their mortgages and stem the rising tide of foreclosures. But at a time when each day seems to bring more bad news for the financial industry, lenders defend the hard-nosed maneuvers as a way to keep their own losses from deepening.

It is a remarkable turnabout for the many Americans who have come to regard a home as an A.T.M. with three bedrooms and 1.5 baths. When times were good, they borrowed against their homes to pay for all sorts of things, from new cars to college educations to a home theater.

Lenders also encouraged many aspiring homeowners to take out not one but two mortgages simultaneously — ordinary ones plus “piggyback” loans — to avoid putting any cash down.

The result is a nation that only half-owns its homes. While homeownership climbed to record heights in recent years, home equity — the value of the properties minus the mortgages against them — has fallen below 50 percent for the first time, according to the Federal Reserve.

Lenders holding first mortgages get first dibs on borrowers’ cash or on the homes should people fall behind on their payments. Banks that made home equity loans are second in line. This arrangement sometimes pits one lender against another.

When borrowers default on their mortgages, lenders foreclose and sell the homes to recoup their money. But when homes sell for less than the value of their mortgages and home equity loans — a situation known as a short sale — lenders with first liens must be compensated fully before holders of second or third liens get a dime.

The increase came after Egypt, a leading exporter, imposed a formal ban on selling rice abroad to keep local prices down, and the Philippines announced plans for a major purchase of the grain in the international market to boost supplies. Global rice stocks are at their lowest since 1976.

While prices of wheat, corn and other agricultural commodities have surged since late 2006, the increase in rice prices only started in January.

The Egyptian export ban formalises a previously poorly enforced curb and follows similar restrictions imposed by Vietnam and India, the world’s second- and third-largest exporters. Cambodia, a small seller, also on Thursday announced an export ban.

These foreign sales restrictions have removed about a third of the rice traded in the international market.

“I have no idea how importing countries will get rice,” said Chookiat Ophaswongse, president of the Thai Rice Exporters Association. He forecast that prices would rise further.

The Philippines, the world’s largest buyer of the grain, said on Thursday it wanted to purchase 500,000 tonnes after it failed to buy a similar amount earlier this month. It is struggling to import 1.8m-2.1m tonnes to cover a production shortfall and on Thursday confirmed it would tap emergency stocks maintained by Vietnam and Thailand.

The order comes in the wake of the discovery last week that four nuclear warhead fuses were accidentally shipped to Taiwan in 2006.

Gates’ memo, issued Wednesday, calls for all items to be accounted for by serial number.

Pentagon officials said at a news conference Tuesday that Gates would call for the review in addition to a full investigation into how the shipment to Taiwan from a Defense Logistics Agency warehouse happened 18 months ago.

The inventory review, which will involve thousands of items, is due to Gates in 60 days. Pentagon officials said the request was ordered, in part, because this latest incident comes after the August 2007 accidental flight of six nuclear-tipped cruise missiles on a B-52 bomber across the country.

The announcement that house sales had plunged has dashed government hopes for a “soft landing” in the sector that has driven the Spanish economy for more than a decade.

The buying and selling of homes fell by 27 per cent in January compared with the same period last year, Spain’s National Statistical Institute (INE) announced yesterday. The collapse coincided with a 25 per cent fall in the granting of mortgages, the biggest drop since 2004. The size of individual mortgages has also fallen, by nearly 4 per cent, as providers fear for the security of their loans.

The indicators published by the state organisation for the first time confirm the widespread fear that Spain’s property sector is not just cooling off, but falling sharply. “We have to accept this is not a gentle correction, but a full-blown crisis. We can only hope it will be sharp and short,” says Fernando Encinar, a director of Spain’s leading online estate agent, idealista.com.

The news will scare millions of Spaniards – and hundreds of thousands of Britons and other northern Europeans – who stretched themselves to get mortgages on homes they believed were a cast-iron investment.

Miguel Blesa, president of the Caja Madrid savings bank, Spain’s second leading mortgage provider, warned that things would get worse. “There will be more problems in the property sector in coming months, since the market in new homes is paralysed,” Mr Blesa predicted.

The Kennedys and King, the October Surprise and Mena, anthrax and Wellstone, Gore and Kerry, Florida and Ohio: you might think that would be enough to make most Democrats say You know what? This isn’t working out. But elections are paced like the Olympics, and in another four years the Jamaican bobsledders may really have a shot. Hey, anything’s possible. And so long as people believe that, and that anything means everything they want, the cycle repeats and self-perpetuates.

The great assassinations of the Sixties were decapitation strikes, never intended to kill the host or to extinguish hope. It’s only the hopeless who are dangerous. Hope must be encouraged, because you don’t need to do anything to have it, and it keeps the prey from becoming wise to its own nature and seeking extraction from the cycle. Hope makes it possible to write and believe such things as “Al Gore will save the planet but Barack Obama will save this country.” Hope that the system works, even if it is just a digestive system.

Restrained predation upon the Democratic Party may be at an advanced stage of domestication, but it also mimics molecular endosymbiosis with the injection of alien organelles in the form of the Trojan horse DLC to which, of all the contenders, both Clinton and Obama are closest in tactics and ideology. Funny how that happened.

And how did that happen? I think there’s an institutional instinct at work, in the Deep Context, that maintains the insectival social engine of power. Does Obama know his role? That may be irrelevant, because the volition and cognition of the individuals who form the living manifestation of the system may be grossly overstated. They have given themselves to the system, the system has groomed them and raised them above all others, and they instinctively know what the system requires.

The resulting blaze was quickly extinguished and officials said efforts were under way to get shipments back to normal from Iraq’s second city of Basra where fighting broke out on Tuesday.

It is the first time since 2004 that the vital southern supply route has been disrupted. Officials had different views about how long it would take to restore supplies and the seriousness of the incident.

“This morning saboteurs blew up the pipeline transporting crude from Zubair 1 by placing bombs beneath it. The pipeline was severely damaged,” the SOC official said, speaking on condition of anonymity.

“Crude exports will be greatly affected because this is one of two main pipelines transporting crude to the southern terminals. We will lose about a third of crude exported through Basra,” he said.

U.S. crude rose by more than $1 to trade above $107 a barrel after news of the attack.

Officials in Baghdad by contrast were optimistic the damage could be contained.

–Statewide, median sales prices fell by a stunning 26% from year-ago levels in February, with home prices dropping at a rate of nearly $3,000 a week, the California Association of Realtors reports. Further, the CAR says the Fed’s interest rate-cutting campaign “will have little near-term direct effect on the housing market.”

–In the San Fernando Valley, losing a home to foreclosure is now almost as common for families as buying a home. The L.A. Daily News: “During January and February, there were 1,084 foreclosures and 1,335 sales of houses and condos in Valley communities from Glendale to Calabasas, according to the San Fernando Valley Economic Research Center at California State University, Northridge.”

“It’s bad. It’s really bad,” market analyst Nima Nattagh told the Daily News.

The California Association of Realtors reports median prices fell 27.2% from year-ago levels in the hard-hit Inland Empire east of Los Angeles, 30.9% in Sacramento, and 39.1% in Santa Barbara County.