I feel sympathy for those folks who are starting to lose their homes because they took out adjustable mortgages. That's a bad situation to be in. I just didn't realize that they were all stupid. I figured that they had gambled that rates would stay low, and lost that bet. Or maybe they miscalculated just how much rates would rise and how it would affect their ability to pay.

Today I heard a news report that actually told me that these poor people were in the position they are because they didn't understand how an adjustable mortgage worked.

So these unfortunate borrowers - who, by the way, initiated contact with these evil lending institutions - were forced to sign enormous documents in multiple places in the presence of lawyers without anyone making an effort to explain what the conditions were in order to borrow tens or even hundreds of thousands of dollars.

See what I mean? These folks were stupid! They didn't know enough to ask questions. They didn't *understand*! They're victims.

Like I said, I feel sorry for them because it's a lousy situation to be in. But not sorry enough to think we (as in the taxpayers) should bail them out. And if their credit is ruined for a while, then maybe it's better that way because they're obviously not ready to play with the adults in the real financial world.

Update: Over at Wizbang!, new contributor Jayson Javitz provides an insider's look at the looming "Mortgage Tsunami". It's worth checking out.

Posted by: Ted at 04:57 AM | category: Square Pegs
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