You're on the right track. There won't be a margin call, but deflating/stagnant values and high interest rates prevent these lines of credit from being establi

You're on the right track. There won't be a margin call, but deflating/stagnant values and high interest rates prevent these lines of credit from being established. This is what causes the overall economic slowdown in the US. People use these HELOCs for all sorts of spending they can't afford otherwise.