I wrote several early-warning articles in 2004 about the spike in go-go mortgages. Before that, I had a hand in covering the Asian financial crisis of 1997, the Russia meltdown in 1998 and the dot-com collapse in 2000. I know a lot about the curveballs that the economy can throw at us.
But in 2004, I joined millions of otherwise-sane Americans in what we now know was a catastrophic binge on overpriced real estate and reckless mortgages. Nobody duped or hypnotized me. Like so many others — borrowers, lenders and the Wall Street dealmakers behind them — I just thought I could beat the odds. We all had our reasons. The brokers and dealmakers were scoring huge commissions. Ordinary homebuyers were stretching to get into first houses, or bigger houses, or better neighborhoods. Some were greedy, some were desperate and some were deceived.
As for me, I had two utterly compelling reasons for taking the plunge: the money was there, and I was in love.
And then he just went and spent $30K a year more than he had, in the magical belief that if he and his spouse looked the other way they’d be fine. He seems to write without any clue to the mindboggling conflict of interest in putting stories in the newspaper every day about people and companies who were even stupider than he was — but whose failure would also result in further disasters for him…