james ozzie
What do you think was fuelling world growth, particularly in the US and EU up until last year? It was people realising that huge paper profit in their homes by taking out Home Equity Lines of Credit (HELOC) and spending it. The trend was very similar in Aus with many families unlocking the wealth that had accumulated and grown in their homes with Home Equity Loans. Now we are in a position where people particularly in the US can’t do this anymore because of the collapse of the property market there and the reluctance of banks to lend against these properties.