Isn't it ironic that

[kandrathe]

It looks like this is what happened to many people.

I've never liked ARM's myself. They are too risky for me, but I've taken out loans where you can defer (for a period of time) locking in the rate until the rate goes down (hopefully). I like good old fixed rate mortgages with a hefty down payment. The problem is that lenders make their loans into gambling products where losing results in real family tragedy. It is not clear that the consumer realizes the risks.

I don't feel sorry for a company like AIG, where risk is their business. I've worked with AIG on a different problem they had about 7 years ago where they had to struggle to remain solvent due to a massive devaluation on used automotive assets (SUV's).

What is sadly ironic is that the same gambling spirit that has screwed consumers of loans has screwed the lenders as well.