How 'houses as ATMs' feed a recession

Tuesday, December 24, 2019 - 09:20 in Mathematics & Economics

For most Americans, their home is their most valuable asset, so it makes sense to borrow against the equity to obtain cash. In lean times, that money can be spent on consumption, which keeps the economy humming along. But if housing values and personal incomes don't rise, borrowers might find themselves struggling to repay the debt.

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