Not exact matches
Indeed, one of the
problems with home -
equity loans is that they
cause debt persistence.
Although the company had a strong debt - to -
equity ratio, its quick ratio of 0.84 is somewhat weak and could be
cause for future
problems.
It is true that the housing bubble
caused more damage because it was a debt bubble vs. an
equity bubble, and that
caused a bigger financial
problem because banks and shadow banks were more financially exposed to the
equity losses of the housing bubble (
equity based upon debt x 10).
If
equities outperform and
cause me to buy more bonds, well hey, it's not a
problem because the portfolio growth is lifting me clear of emergency situations anyway.
This June, in an effort to give more students access to excellent teachers, the United States Department of Education required states to submit «educator
equity plans,» meant to identify the root
causes of why poor and minority kids receive more inexperienced teachers and fix the
problem.
Instead of honestly acknowledging the root
causes of struggling schools and investing in real
equity in public education, today's policymakers and deep - pocketed corporate education «reformers» offer misguided strategies that fail to address the central
problem: a failure to invest in Black, Brown and poor children, the educators who teach them and the communities in which they live.
From my angle, the Fed will slowly be forced to recognize that
problems developed from speculation in residential real estate, CDOs, overdone arbitrage strategies and private
equity are either a) too big to solve through monetary policy, without
causing a lot of inflation, or b) they will try to «solve» the
problem anyway, and hope that inflation doesn't rise too much.
However, it wasn't long before prices began to peak and eventually fall,
causing all types of
problems for borrowers with little or no
equity in their homes.
A home
equity line of credit can be a great way to manage finances but it can also
cause problems if not used correctly and to your advantage.
Indeed, one of the
problems with home -
equity loans is that they
cause debt persistence.