Remember all the ads that said a vacation? Put it on the house! and it is no coincidence that the phrase the house, denotes in your mind. That precisely what they wanted you to think. The discovery that you had to pay it back was supposed to come later.Interestingly enough, according to the article, now is the meaning that is becoming true. Second mortgages are going unpaid in increasing numbers, and homeowners are threatning the banks with default if the bank doesn let them alone.Which means all the junk they bought with those home equity loans cars, vacations, ipods, dental work, the wife new boogs, whatever really will be, ultimately, free.Not really free, of course. All that money, by not being repaid, is souring the credit markets, making other loans harder to come by. Because the loans were back by value in homes that has now disappeared, it is going to be impossible to get it back. Banks are showing profits, but with less money to loan floating around, the economy as a whole will suffer.Which means unemployment stays high and all the rest.It also means that you and I who saved up money and bought things, and paid our debts, are once again being played for saps.If it were up to me, I demand the banks go after every one of these deadbeats hammer and tongs a national lesson that you can borrow, not pay back, and suffer no consequences, is a very bad lesson indeed. The sight of a few of them living on the curb might scare the rest into more responsible fiscal practices and then the nation as a whole will be better off.Yeah, but if they do go after them hammer and tongs, they will walk away from their mortgages, which means more repossessions, more defaults, more problems for the housing markets, higher unemployment, etc. etc. Problems either way. It seems like a Catch 22 the banks have created for themselves. Or as Oliver used to put it to Stan, another fine mess you gotten us into! to me.I have a hard time believing, though, that a great many people were fooled by advertising into thinking borrowing against your home equity meant free money. Most of those who did it and now can pay were foolish, spendthrifts, etc but not fooled by advertising.The phrase the bankers threw at us when property values began to rise significantly was money out of your house for well, for whatever you want to use it for. English translation: the size of your mortgage by borrowing more. I find it hard to believe people agreed to that without understanding they were in fact borrowing more and increasing their debt when they money out of their house. As many, including Charlie, have pointed out, shopping! is the war cry of our time. No more living small, no more saving up for what we want we have a patriotic duty to be consumers. It completely ingrained in our culture to spend and spend, and when we run out of money, we borrow, so that we can spend some more. Gotta have the latest gadget, gotta have the best car on the radio I heard a couple of ads for mortgage loans too to remodel? Want to take that vacation? Want something you haven got a dime for? Do it the easy way and call our mortgage company this problem is just the spending coming home to Air Jordan Spizike roost living in an unsustainable way has to end some time it a shame that it always has to end with a crisis situation that hurts everyone.While I generally agree, I carve out an exception for people who took out second mortgages or refinanced and took money out to pay for medical care, operations, etc. they could not otherwise afford. If I had a wife or child facing some dread disease and in need of expensive medical care to live, I take out a second mortgage for every dime I could if I had no other way to pay for their care. And there are people across the country who find themselves in that kind of bind. I think the largest single cause of personal bankruptcy in the country is medical bankruptcy.So while we leveling justified criticism at the Nike KD 7 free spenders on Air Jordan 6 Rings borrowed cash they couldn afford to borrow, I exempt those driven by life saving medical costs they could not pay any other way.Our economy is based on consumer spending, and the housing bubble was based on people increasingly in homes with Bush society the latest push.Since homebuilding couldn be outsourced to China, it was the one thing that kept people employed: contractors, tradesmen, big box home stores, furniture, Crap China Decorating Stuff Inc and THE BIG GIANT CHEAP CLOCK required of all McMansions.As the market cooled, mortgages got easier to obtain, via the subprime market and resulting derivatives.First time buyers had starter homes with granite (radon emitting) countertops, stainless steel appliances, stonework, the required stucco AND of rooflines because it looks more expensive THEN you didn have a mortgage (ie, if you had equity or no mortgage at all), you were bombarded with the the house home equity offers.AND made so much sense to some, Air Jordan 7s to take out home equity loans for that car, vacation or spending spree BECAUSE IT WAS A TAX DEDUCTIBLE LOAN!The entire economy now centered on the home industry and associated mortgages.Want to make money? Watch This House and see a poor person spend $500,000 on a hovel and sell it for $850,000. Yeah, you can do that, too! No down payment? Take out a home equity loan! We don care what you spend the money on!No longer was your house a home. It was your investment and something you profit from! long as the interest on home equity loans is tax deductible, the spending spree will go on. Oh, it cooled for awhile once the market warms up again, it be back.I have little sympathy for people who are in over their heads.When we bought our home in 1975, we were down for several years the market was stagnant. We really didn care, because it was OUR HOME. Not an Air Jordan 13s investment.