Well I sort of agree with SD except that credit cards are not a fair comparison.
People were under the impression that the underlying assets (houses) were rising or remaining stable in the near term (as opposed to credit cards). While those of us with a broader knowledge of this saw pieces lining up for a fall, I think a lot of people really thought that taking out money was a safe bet. This was foolish (or “stupid” as Adam prefers to describe it). However, our thoughts on underpinnings of the market were not the “common sense” Socratt mentioned. If they had been (emphasis on the “common”), the current housing would have been somewhat mitigated I think.
I don’t seek to absolve poor decision makers from responsibility but just to point out that not everybody has our insight. If you find them foolish I will agree but I am not sure Socratt’s harsh words will be more “educational” than a BK or foreclosure on one’s credit. People suffer painful consequences for foolish mistakes (and appropriately so). That being said, I try not to be too judgmental here. Like I said in my first comment, I expect to be in the minority on this.
A question for Adam/SD: What percentage of buyers from the past few years would you estimate are upside down now? One of my friends has something like 70% of her client pool upside down. Just curious.
