Talk:Negative equity

Negative equity applies to more than real estate
It also applies to automobile loans, for example. I'd like to see someone with financial experience generalize this article. AaronWL 05:33, 19 January 2007 (UTC)


 * It also applies to business accounting where owners take draws from the business. Quickbooks forums has a much better explanationDoolin (talk) 13:21, 13 September 2008 (UTC)


 * Exactly, it also happens when the value of the asset decreases below the the amount borrowed--as in a car loan. --Jabin1979 —Preceding unsigned comment added by 99.153.63.142 (talk) 18:16, 27 April 2008 (UTC)


 * This article needs a decent clean up, some fairly poor grammar and use of english. Jamiem13 (talk) 21:24, 2 April 2008 (UTC)Jamiem13

Ambiguous statement
"The term was widely used in the United Kingdom during the economic recession between 1991 and 1996, and in Hong Kong between 1998 and 2003, which led to increased unemployment and a decline in property prices, which in turn led to an increase in repossessions by banks and building societies of properties worth less than the outstanding debt." Strictly speaking, this implies that the unemployment and decline in property prices were cause by the use of the term. Presumably this is not what is intended. For one thing, surely the important issue is not that the term negative equity was widely used at this time, but that negative equity was a widespread problem at this time.

A suggested rewording:
 * "Negative equity became a serious problem during the 1991-1996 recession in the UK and the 1998-2003 recesion in Hong Kong. These recessions caused an increase in unemployment and a decline in property prices, which in turn led to an increase in repossessions by banks and building societies of properties worth less than the outstanding debt."

I won't change it myself, as I don't know enough details about what actually happened and why (hence all the tags), but this really does need changing. Wardog (talk) 10:54, 8 April 2009 (UTC)

What are the effects of negative equity?
E.g. on individual behavior, and on the economy as a whole. Danielx (talk) 02:47, 2 June 2013 (UTC)

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