NOYB wrote:
Why is it dumb? I explained in detail why it works well for me. Why pay
interest on an asset that's appreciating at 10-20% per year?

Because it's a mug's game. You're handing over a lot of money to the
bank, and paying upkeep & insurance on a big fancy house you can't
really afford, while hoping that the boom will continue long enough for
you to come out ahead.

In the stock market, this is called the "greater fool" strategy. Guess why.


So what. In 2009, my rate can begin adjusting 2 points per year, upto a max
of 5 points.

Sorry, read the fine print. If the prime rate hits 12% again, do you
think your banker is going to be all palsy-walsy about keeping your
fancy expensive roof over your head, out of his pocket? Homey don't play
dat... your mortgage is probably already sold off to a secondary holder
who has no contractual obligation to you.


Insurance is just legalized gambling. Think for a second... why do you
have to gamble so heavily on your own failure? If you weren't taking big
risks, you wouldn't need so much insurance.


And I would reap the rewards that go along with risk.

Although you've certainly shown yourself to be mean-spirited and petty,
I don't wish you ill. My advice is that tap-dancing on the edge of a
cliff is not a profitable undertaking, but you've convinced yourself
otherwise. Good luck.

DSK