This forum really needs a quote feature, but here goes anyway.
"Bmarum, sounds like you have some very fortunate friends to be in such a cush job. I'd be curious as to what type of profession/industry they are in that "guarantees" steep salary increases. My guess is that there are not too many industries like theirs. These jobs you speak of sound almost too good to be true."
I wouldn't say they're cush jobs — these people work quite a bit. But it is amazing what you can earn with a professional degree in this town.
"Not everyone who drives while intoxicated will get into a car accident. Whould you still advise them to drink and drive? I'm just using your own logic."
Of course not. And I never would have advised these people to take out exotic loans. My point is simply that just because they did so, does not mean they're going to be financially ruined. Your analogy regarding the car accident and the drunk is appropriate. Getting the exotic loan to buy a house you couldn't afford isn't smart, just like getting behind the wheel when drunk isn't smart. But, when people are forecasting a financial disaster based on the simple fact that someone took out an exotic loan, the fact that not all people who took out exotic loans are going to end up in trouble IS relevant. In essence, the doom and gloom forecast for that particular individual depends on the drunk driver getting into an accident, which as we all know doesn't ALWAYS happen.
If I haven't made this clear already, my beef is with the blanket statements people are making, not with the general idea that the exotic loans of the past couple of years are going to cause problems for the real estate market, and a lot of individuals, in the very near future.
