Originally Posted by RichRed
I think people thought that qualifying for a certain figure meant they could automatically afford that amount without actually doing the calculations on it for themselves. Foolish on their part and irresponsible on the banks' part.
Sure. But if you believed that the rise in home prices, circa 2004-2007, was sustainable, then taking out a big loan for a big house isn't so stupid. Stupid is buying into the hype. And most people did.
I've got friends, intelligent people, who gave me all kinds of reasons why buying an overpriced house in those years was a good move, "Bay Area real estate is always a good investment", "a house is always going to be worth something" and the classic, "they're not making any more land".
How's that looking?