3 ms·
All that leverage absolutely crushed investors in the 2008 housing crash, and is again now ruining people who had poor or nonexistent interest rate hedges. The
by compiler-guy 3y ago
All that leverage absolutely crushed investors in the 2008 housing crash, and is again now ruining people who had poor or nonexistent interest rate hedges.
The idea that it’s easy or natural to make money via leveraged housing had ruined many people.
- ozr 3y agoThis isn't really a thing in the US right now. Less than 10% of mortgages are adjustable. The share of ARMs in 08 was much, much higher.
- ethbr1 3y ago*/1 ARMs are insane and shouldn't be allowed in the market. */5s or even */3s offer an interesting option, depending on terms.
- refurb 3y agoYup, people don't realize that leverage works both way. It's not a freebie.