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So with your logic, we shouldn't buy a house at all because we'll probably lose our job and won't be able to afford it anyway, regardless of the size. Should p
by nhangen 16y ago
So with your logic, we shouldn't buy a house at all because we'll probably lose our job and won't be able to afford it anyway, regardless of the size.
Should people who signed ridiculous deals be blamed? Absolutely, but that's not the majority of cases.
- yummyfajitas 16y agoIn general, if completely normal events will cause you to lose money an investment, it's probably not a good idea to sink your life savings into it. Make up reasonable numbers and apply the Kelly Criterion to evaluate whether buying call options on a home is reasonable. Wikipedia even gives you code: http://en.wikipedia.org/wiki/Kelly_criterion http://en.wikipedia.org/wiki/Kelly_criterion
- nhangen 16y agoI don't think anyone said to sink a life savings into an investment. We're talking about buying reasonably sized and priced homes.