But with even a small amount of leverage, you'd be completely wiped out. With 2x leverage and a 50% drop in the asset price, you're broke: there is no "just rid

But with even a small amount of leverage, you'd be completely wiped out. With 2x leverage and a 50% drop in the asset price, you're broke: there is no "just ride it out." The stock market is one thing, but anyone with a mortgage is leveraged to the tits, which is why real estate is so cyclical and the downturns can be so devastating.