Real estate is quite a bit different than stocks. When stocks go down they can really plummet, whereas real estate usually doesn't lose that much of it's value even in a downturn. The problem is that a large number of people have very little equity in their homes. So if a $400,000 home goes down to $300,000 those people have just lost $100,000 they don't have. Stocks on the other hand are ussually bought and paid for, so even if you lose big in the stock market it doesn't land you in debt.
I think this guy might have to rob another bank...America is so cruel
If you buy a stock, even on margin and the price falls and you sell it, you lose your money immediately. If, OTOH, you don't sell your stock and ride it out, probably you only have a paper loss.
The same things is reversed, IF you can't pay your mortgage and default. You lose your home AND you lose whatever equity you have in it; however, since you don't have any equity with an all interest mortgage, you haven't lost what the value of the house used to be or has become. You didn't have any money in it.
If you own your house and don't have to move, you don't "lose" anything at all, when/if prices go down. Neither do you GAIN anything, when/if prices go up......until you sell your house.
If you knew how many people were buying stocks (or gold) on margin, you'd be shocked.
When a house "goes down in value" from $400K to $300K, that is not a big deal? Most people finance 90% so they would have put down $40K, meaning that they have lost 250% of their investment. Even on margin, you can't lose more thant 200% of your investment in stocks.