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[Gene GeRue <genegerue AT ruralize.com>]

> What I mean is this:  if people are using the equity in their home to make
> general purchases, then they no longer have that equity in their home, do 
> they?

Of course.

>  Else all they are doing is making a loan to themselves.  They are kiting
> their own checks to themselves, as it were.  Seems to me that this would 
> add to the 'perfect storm' likelihood.

How so? They are acquiring cash for any purpose they choose by refinancing 
at a lower interest rate than they had before. The savings in interest 
often allows the same payment.