Reply #33: Speculation.... [View All]

[sendero]

.... speculation and more speculation. When the cost of money is almost nothing, and requirements for a loan almost nonexistent, there are just a bunch of folks who cannot resist rolling the dice.

And speculators unfortunately are not just folks who are "investors" hoping to flip a house in a few months and make some $$$, it is regular folks who get sold on the absurd idea that it's ok to buy a house with an ARM when rates are at historic lows, or to buy with no down or to buy with an "interest only you pay me forever" loan - all in the absurd assumption that prices will rise indefinitely.

It's sad, but it's also very predictable and I know I'm a bastard for thinking it but most of these folks have made really stupid decisions and now they get to pay, along with everyone else. It sucks all around.