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$18 Trillion in Home Equity at Risk: Biden’s Plan Raises Comparisons to 2008 Crisis – Check It Now!

(photo: The New York Times)

Biden’s home equity plan resembles risky practices from 2008.

Risks of Biden’s Home Equity Plan Echoes 2008 Crisis – Critics Fear Taxpayer Fallout

Biden’s plan to boost spending with home equity loans mirrors risky practices before the 2008 crisis. Critics fear it could lead to trouble if home prices fall, leaving homeowners owing more than their homes are worth and at risk of default. With $18 trillion in home equity at stake, taxpayers could bear the brunt of any fallout similar to the past crisis where low down payments and minimal equity caused mortgage defaults, according to the report of Arca Max.

READ ALSO: 11 GOP-Led States Sue Biden Administration Over Student Loan Forgiveness: 3 States Gain Legal Standing, While 8 Are Dismissed From Lawsuit-Check It Out!

(photo: The New York Times)

Biden’s Home Equity Plan Under Scrutiny Amid Election Stimulus Suspicions

Some think Biden’s push for more borrowing before elections is political. Critics worry about high household debt and the wisdom of encouraging more borrowing. Financial institutions predict big government-backed home equity loans, like student loan forgiveness, raising sustainability concerns. The administration is under pressure to justify its plan with fears of sparking past financial crises highlighting the need for careful economic policymaking.

READ ALSO: 21% Corporate Rate, $20M Estate Tax Threshold, And Shift In Federal Spending-What’s At Stake?

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