Someone explain to me what the actual fuck is going on in the Asset/Liabilities chart under the Debt Turns Toxic paragraph. Either there's a typo or I'm a fucking retard. Either way it makes no sense to me.
the bottom line could also say
80k | 95k loan, -15k equity
>>1100138
I don't get it. Isn't the equity supposed to go into downpayment? Meaning the debt should always be at 100k?
Why does the price change bring debt down to 95k? I would understand it if it were due to a downpayment of 5k, but in the first scenario not all of the equity goes into downpayment for some reason. Just 5k out of the 20k. Why?