They often go hand in hand but are not the same. However, the point remains, that if the bank is giving money to cover spending you can’t afford and you’re in negative equity, you should be broke but aren’t, on someone else’s dime. So it’s not really different from the child who is broke and parents pay for everything.

I don’t know that your example is real though as I think banks wouldn’t lend in that fashion, or at least shouldn’t. It can happen when there is a housing crash. I think a large part that people are becoming broke is they are not accumulating assets from their pay. It goes on interest and rent. Historically it went to mortgage payments and people were more likely to own than rent,