If mortgage debt is good debt, why are so many borrowers having such a bad time?

 Jonathan Clements poses an nteresting question today in his Wall Street Journal column. He discusses why leveraging using a  mortage can be your best investment move. Or could turn into more than a giant headache. Read the column here:

GETTING GOING By JONATHAN CLEMENTS

My own view is that its always best to use your home equity if you are going to leverage your investments for the simple reason that this is the lowest interest rate you'll get anywhere. Don't put your investments in little boxes and try to make each of them cash flow. Look at the big picture. If your rental home is not quite cash flowing, but its got good appreciation potential, go for it. Rather than pay the higher rate on mortgage loans secured by investment property, use your home equity (or some combination) to make the purchase. Look at the big picture and make sure that picture shows that your cash flow from all sources will cover your living expenses -- from your career, your real estate investments, and your other investments. I'm not sure that borrowing money to stick it in the stock market (401ks) makes sense. Probably not. But paying down a 5.5% home mortgage when your income increases rather than putting money in 401ks probably does not make sense either. Think it through!