Friday, March 21, 2014

I Guess We Learned Nothing From 2008, or 1928...

Of all the idiotic short sightedness... I present you with 3 Reasons To Tap Home Equity to Buy Stocks.

I kept checking to make sure this isn't from The Onion, or Cracked.com, or even Buzzfeed. Nope, it's Yahoo! Finance. Not that Yahoo! Finance has that great a reputation for being a useful financial site. This is probably the first time I've read it in years, and only because I read ABOUT the article but there was no link so I had to look for it myself.

It's not a bright idea to tap into one volatile market to invest into another volatile market.

I made the big mistake in the mid 00's to over-leverage a house because values were rising so fast. Then the market collapsed out from under me. After paying on an upside down house for 7 years, divorce forced my hand and I had to short sell the house. Housing values in that area crashed so bad, the buyer purchased the house in 2014 for less than I originally paid for it in 2001.

But since nobody ever learns, here is the seed for the next housing/stock collapse.

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