Eric Balkan

What Is Ben Stein Smoking?

Everything Felix stated is wrong? That's pretty harsh.
"Subprime mortgage rates can easily get into the double digits, and homeownership makes very little sense in that situation."

That sounds right to me. When these ARMs reset, they often do reset to rates that are in double-digits.

A lot of these refinancings only made sense in a world where real estate prices keep going up forever. Here on planet Earth, which I invite Ben Stein to visit sometime, there are a lot of homeowners who would indeed have been better off as renters, until they could have really afforded to buy a house.