| 1 | If the price level rises, your principal rises as well. | |
| 2 | But others question the likelihood of success without reducing the principal. | |
| 3 | Even then you would only spend the returns on your investment. Never spend the principal. | |
| 4 | Lenders have to set aside less capital for loans against property because of its security as collateral. | |
| 5 | If negative equity is the real problem, principal will have to be reduced to stem the foreclosures. |
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