Ok. When the debt to income ratio is so out of whack and income is not even close to really paying for a house, it is speculation. The only information you have is rates are low and the possibility, which I think everyone will agree, that eventually the rates will rise. To speculate that rates would not rise is not being “informed” but stupid and/or ignorant and gamblig. To assume that one would continue to flip indefinitely, has never played musical chairs as a child.
I repeatedly have said, I do not have any kind of special degrees and the first to say my forte is not math, but even I saw that the subprime could only go one place, a very bad place. Until I came upon this board, I felt like I was the only one against the grain, refusing to succomb to this subprime insane train that everyone was eager to board, defying all logic.
My amazement is only that the ride lasted so long. And now I think the only amazement will be the reverse process.
I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.
