If you are going to give out high risk mortgages, or invest in companies that give out high risk mortgages, or funds that invest in them, then you accept high risk for the potential of high reward. Unless you have connections I guess.
I have literally no formal training or experience in lending, but common sense told me about two years ago, that if you continue to push variable rate loans during a time of historically low interest rates, eventually the rates would go up, borderline customers would start to default, and your market would dry up.
Last edited by Cyclonepride; 08-23-2007 at 05:29 PM.
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