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A comment on Show HN: Is the stock market going to crash?. Parent comment

Re:Show HN: Is the stock market going to crash? by matt-attack on Monday August 07, 2017 @11:00AM (#14947949)
But while the household debt is huge, isn't it naturally balanced by the equally massive collateral the banks have in the houses themselves? I mean, sure Joe America has a $500k mortgage, but the bank has first position on Joe's house which is worth $675k.
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Re:Show HN: Is the stock market going to crash? by tveita on Monday August 07, 2017 @11:19AM (#14948133)
> first position on Joe's house which is worth $675k

Only in a healthy housing market. In an economic downturn where a lot of people are defaulting, the bank will not be able to sell the house for anywhere near that price.

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