Never say never. I've seen corporate executives and business owners get into financial trouble.
The truth is that there's too much liquidity sloshing around and that liquidity is looking for a return — any return. Prosper.com is one such example.
The problem with 100% financing is that the borrower has nothing at stake but the upside. He gets to gamble with other people's money. The private equities are also gambling with other people's money. Hell, I'd do that same too. Most people won't fly first class with their private funds but they'd do so with the company's money.
I see an implosion in the mortgage business as losses mount. The private equities are next.
