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Originally Posted by SuckOnThis
Because debt is at a record high and a LOT of people have taken out home equity loans which are not locked.
Mix that in with lower wages and you have a recipe for foreclosures.
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Smart home equity loads are locked..
Many are locked, but balloon after 15 years..
Pay them off in 15 years, and locking in on a good rate home equity loan for investments that pay higher % returns only makes sence.
But I hear ya.. The typical Joe American blows that home equity loan on paying off creditcards, going on trips or doing some other bullshit with no plan on paying it off.
Anyhow, for the smart, the market is still a great oppertunity to be bullish.
But the typical Joe, as with any market, reality will set in and the bad money decsions always catch up.
Its going to be intresting to see how all the debt the avarage American is in will pan out over the years.. Whather it be from creditcards, home equity loads or whatever.
The key here is, we need to figure out how to make money off these people.
That will be key.