This from advar at RE Talks 24 Feb 2010 2:49 am -
“I cannot help but shudder at the prevalence of this particular disposition [to spend personal residence paper profits by taking loans]. Amongst my colleagues at least — well educated people even. The number of times I’ve listened to individuals discuss how they’ve magically turned their ‘paper gains’ into ‘expensive toys’ is quite unnerving. HELOCs are tantamount to the discovery of Shangri-la it would seem. Anecdotal I know. But from where I’m positioned, it’s ubiquitous, and it’s frightening.”
