rm

Personal Responsibility and the Housing Bubble

[What happened to putting 20% down on a home?]

If you'd like housing prices to deflate another 50%, then requiring a 20% dp would do nicely.

[What happened to taking out a mortgage where the payments were affordable for the duration of the loan?]

Now there's a good question. Pre-2003, you couldn't sell an adjustable rate mortgage with a shotgun in your hand.

[The doctor admitted to not reading any of the loan documents saying she did not have time to do that since she was busy running her medical practice.]

She's really not that unusual. Due diligence is a chore. How many average investors read a prospectus, much less get on any conference call, or check a company's financials before buying a stock? Watching Cramer or reading a blog is what passes for research.