[2banana]

The housing bubble in Europe (with the exception of Germany was/still is insane).

A small example. In Slovakia the average wage is $500-$1000 per month. The average flat price is $200,000. Everyone was getting “rich” on their flats. Insanity that had to end.

[maica]

Everyone was getting “rich” on their flats. Insanity that had to end.

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Yes, “taking equity out of a home” for so many people contributed in large measure to the brick wall that the banks hit when money got tight last summer. When millions of people found themselves with loans that were much larger than the original price they paid for their house, something does have to give. And it should NOT be the government that ‘gives’ these people money to pay their loans.

These people used their “equity” to take vacations, buy a second home, or a larger vehicle, or lottery tickets or a business. Whatever! They spent their “equity.”

Others who did not, and are not “underwater” in their home loans, should never have to contribute to the gamblers big loans.