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A comment on Low interest rates in advanced countries have pushed money into real estate. Parent comment

Re:Low interest rates in advanced countries have pushed mone... by djyaz1200 on Wednesday November 24, 2021 @04:31PM (#29335408)
That's true except for cash out refinancing. Lots of middle class folks take out home equity loans to pay down credit card debt. This was a big component of the 2008 financial crisis. That and banks leveraging 40-1 and betting big that housing would never decrease in value.
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Re:Low interest rates in advanced countries have pushed mone... by rootusrootus on Wednesday November 24, 2021 @04:54PM (#29335617)
> take out home equity loans to pay down credit card debt

I'm sure I'm preaching to the choir, but this is a terrible strategy. In a perfect world it cuts the interest payment a lot, but the risks are significant.

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Re:Low interest rates in advanced countries have pushed mone... by sokoloff on Wednesday November 24, 2021 @06:32PM (#29336476)
The risk is magnified if you’re the type of person with a track record of running up credit card debt.
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