I hate the term real estate. It's cold and business-y, everything that tends to make me hide under the bed. What I write about is space: homes, cafes, places where you can do work, pet the cat, and Google your next-door-neighbor from 10 years ago. I write about places. And I like to do it from a personal perspective.

Monday, September 19, 2005

Interest-Only, continued

I agree with Allison, most people getting into the interest-only loans are simply borrowing over their heads. The feeling of the housing market is eerily similar to the feeling of the NASDAQ in 2000. The internet brought stock picking to the masses in new and powerful ways, but it lead to millions making unwise investments that will take years to recover from. Now, consumers have powerful tools that allow people to invest in the housing market when they previously had been unable to, starting with 100%+ loans, and continuing up to the folly that is interest-only loans. Yet, the feeling is that there is no risk in this, the market will go up up and away forever, and that somehow it is different now.

But, in other news, the Dow is still above 10,000 and this guy still has a job that undoubtedly pays more than mine.

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