I know someone in DC who is a lawyer and invested in DC condos in the last 2 years to 3 years. He was trying to get friends to invest with him. I’ve tracked his investments and they are not doing well.
He works for what else? The big black hole that is Homeland Security. The only reason I mention his job is that you’d think that professionals working in security would be the careful conservative types — not. His salary does not support the carrying cost on several properties so when the loan reset there’ll be some hindsight regrets.
I think that when all is said on done, we’ll find out that the upper-middle class gambled on housing and subprime/exotic loans even more so than the lower income folks. I would go so far as to say that the RE gambling ran across economic classes, in proportion to earnings.
