That's cool and all. But I think he's referring to people rolling over mortgage debt (home equity loan / cash out) to but a new car they don't really need, which keeps people in a debt cycle. IMO the reason to finance a home is to pay it off eventually, but a lot of people use it as a cash cow, and our economy (especially new car sales) depends on that. Watch what happens to the new car market now that mortgage interest rates have topped 5-6% and refinances start to dry up. And we're nowhere near the peak IMO, and the government knows it-- that's why recession indicator flags are flying nice and high.
Our economy in this country is like a giant game of Jenga. 70% of it is based on consumption / consumer spending. You take a couple of the blocks out in the right places, like easy access to money, and a whole section of the population that's been scraping by is now indebted and their ability to consume and spend is greatly diminished.