What about the home equity line of credit? In the 1980’s banks offered this new revolving line of credit . . . and everyone wasted their equity - the biggest savings in their lives blown away.
“What about the home equity line of credit? In the 1980’s banks offered this new revolving line of credit . . . and everyone wasted their equity - the biggest savings in their lives blown away.”
There’s an economist in SoCal, Chris Thornburg, who I once heard say that the boom in California after 2001 was equal to the amount of home equity withdrawal. And that when it stopped the economy would, too. He was one of the lonely voices warning of the real estate bubble and how it was going to end badly.
What about it? Home values dropping and equity lost is collateral damage, along with cookie cutter homes made of low standard materials (thanks to the 1994 NHS) instantly losing value that those homes will never see again.
It’s supply and demand; false demand created by gov’t policy which finally caves leaves over supply.