“That is a lot of money to lose. It was not like they were charging a high interest rate to begin with. Why are people taking that kind of risk for a puny return”

Uhhh, what the hell have the bears here and on other blogs been screaming about for the past 18 months bob???!!!

That’s the point man, it isn’t worth the return when you factor in the appropriate level of risk that actually present in the investment. That is true whether you are the ultimate bagholder of the RMBS or that SFR investment in San Marcos that doesn’t seem to be appreciating at 15% per year anymore.

The thing to really be concerned about is if they want you and I to pay for it through a bailout of either the homedebtors or the banking institutions.