Rustico, that’s the right stuff (in your paragraph).
But the point I was really making is that investors supplying money for new home loans may demand a higher return over the next 10-20 years, in comparison to the rate of HPA, than they got over the last 10-20 years. This debacle will show them that they’re the ones providing most of the money and taking most of the risk, something they haven’t really appreciated until now. The only way around that is a lot of ‘sorta dumb’ money not seeing the risk in front of their noses, or at least choosing to ignore it for bigger reasons.
