| When you think of it...
It is hard to find any government policy that makes sense...
IIRC someone mentioned earlier the tax deductability of home mortgage interest "encouraging home ownership". Until you find out that as you pay off the mortgage, your taxes go up and up. So you refi and take out more money to get that tax bill down. My California siblings seem to live by that rule.
No, it seems the mortgage deductability only encourages "home indebtedness".
So it doesn't surprise me that FA policy encourages people to become illiquid in their assets. |