The North County Times is writing about liberation

The North County Times is writing about liberation.'People are liberating the equity in their homes and they're spending the money... in 2006, this isn't going to be happening at anywhere near the rate we have seen in the past.'The median detached home in North County costs $644,899, and costs $3,815 a month, including principal, interest, property taxes and insurance. It costs nearly $24 an hour to pay that amount, assuming an eight-hour day, 40 hours a week and four weeks to the month: Food, transportation, utilities, rent and other expenses are not included. It seems to me the NCTimes is describing a significant structural problem. The median home, not counting food, transportation, utilities, rent, etc, costs more than most people make. My biggest gripe, however, is the idea that people are 'liberating money' by extracting home equity only to go deeper in debt. My idea of liberation (but I am not there yet) is paying off my house and having cash savings in the bank as well as gold, silver, and short to intermediate US treasuries. Throw in some equities on energy and miners and you stand a decent chance of being able to do well no matter what hits. When the upcomming consumer led recession hits, those deep in debt facing slumping housing prices are going to feel more like debt slaves than they will liberated. Liberation is being out of debt not the opposite. Here is an example of liberation in action:Bloomberg is reporting Argentina to Pay Entire IMF Debt 4 Years After Default.