I think a lot of American homeowners are being set up.
I'm sure all of us (at least those of us in California) know someone who recently sold their home because they had huge gains/equity in the home -- only to turn around and get into a much bigger mortgage than they had before.
They do this without getting raises at their jobs, and they do it knowing that the economy is on the ropes.
But the low interest rates are enticing them to strap themselves to an even larger mortgage than they had before.
So what happens if the RE market value drops considerably? The squeeze will be on, people will lose their jobs & not be able to afford their shiney new mortgages.... leading to foreclosures and bankers getting it all.
Bankers are smart - they always win
