I've always felt like I'm pretty well insulated from being scammed by dint of being so suspicious and untrusting. Which is not to say that I don't make bad money decisions based on other things.

But. I'm pretty well educated, I like to consider myself fairly intelligent, and going into the whole homebuying thing I spent enormous amounts of time researching and reading and investigating and whatnot. And I still had to take a lot on faith, to trust what people better versed in this were telling me. At the closing I was totally out of my league, and had lots of questions to which the answers tended to boil down to "that's just how it works."

When you don't understand something, you go to experts. In the real estate world, though, most of the experts (brokers, agents, etc.) are people who have a stated or unstated stake in things. Commissions on non-standard loans were much higher for brokers than for traditional loans - I wonder how many people knew and understood that? Your agent is technically your advocate - but their stake rises with your purchase price. I heard people pooh-pooh the idea of having an attorney, or getting an inspection, over and over.

Finally, I'll say this. In terms of people being too credulous about how much they could afford, about how much prices would rise: the idea of homeownership as the best, possibly only, route to long-term financial gain has been practically a mantra in this country for as long as I can remember. It's been fed to us with our Cheerios. And as for "how could you possibly imagine you could ever afford that?" I can't imagine that I could ever afford what I did buy, with payments I can manage, with a totally standard 30-yr fixed. The numbers are just too big.

So. I happen to be a news junkie with an interest in and some understanding of economics. I have to think my general ability to understand the risks, the process, the reality of what I was signing up for was far above the norm.

Which isn't to say some buyers weren't being idiots, weren't trying to pull a fast one, weren't focusing on castles in the sky. But a lot of people simply got in over their heads, and had an enormous industry of so-called experts, suddenly insulated from any of the risks that had previously served as a brake, pushing them that direction.

brenda said it better.

brenda is Queen.

I developed a rule way, way back when: If I don't think I could explain it to my brother (who is intelligent but not extremely well educated and not particularly financially sophisticated), it's too complicated for me to be involved in. And I got sticker shock on how big a mortgage we could be approved for when we bought in 1992, near the bottom of that down market. Our real estate agent was also a buyer agent, so we knew her job was to act in our interest, not the seller's.

I'll also add that buying a home is incredibly complicated. The paperwork can be overwhelming.

I'm at work today -- the Feds don't close for Easter, though a lot of people are out today and it wouldn't surprise me too much if we got to leave a little early. On the other hand, Hubs had to go out of town on business yesterday with very little warning. Far enough not to come home at nights, close enough that he had to drive. Which means I had to do all the morning stuff by myself in time to catch the 6:45 bus. (Came close -- only missed by 30 seconds. But I caught the 7:15 and, thanks to light traffic, wasn't extremely late.)

Ever tried to give a pill by yourself to a squirming 16-pound cat with all his original claws?

Eep. Got some safety goggles, Fred?

My brother just emailed me that Lieberman has officially endorsed McCain. Can I just say fuck you to the voters of Connecticut?

t still bitter about Lamont

Unless things are different in Canada, an adjustable rate mortgage isn't the be-all and end-all of evil. I did some research before I bought my home and if you can handle the topsy turvy of it all, people with variable rate mortgages generally pay less for their mortgage than someone with a fixed rate, and historically, the general trend for interests rates is a downward one. I guess you have to be smart enough to only borrow what you can comfortably afford to payback.

So, I had a one of the worst days yesterday. But it was totally a nibbled to death by ducks day. I ignored every instinct I had, and everytime, I got screwed. The worst thing was not being able to get Leonard Cohen tickets. (Their system couldn't handle the traffic and I tried for hours to get onto the website or call on the phone.) It was topped off by my normally soul destroying 7 hour bus ride being an hour and a half late. Not only did I lose to the will to live, but I was thinking about taking a few more down with me. Then I find out today that they added two more shows and if I hadn't been on the bus ride from hell I would have been able to get tickets.

All hail Brenda!

Ugh. I have to work a full day today. And there's supposed to be almost nine inches of snow on the ground by the time I leave here this afternoon. And, if there isn't, my dad will be driving up tonight with my stepmom's Lazyboy she's unloading and I'm willingly taking, but my apartment is not as clean as it should be for a parental (or anyone else's) visit. I hope that they let us go home a few hours early, between the snow and the holiday weekend, so I can get some vacumning and sweeping done.

But Richardson endorsed Obama - that's good news!

(And given that we've spent the last few days watching Lieberman whisper into McCain's ear - it can hardly be a surprise.)

I have 71 criteria on which to grade these projects. How on earth am I going to make this come out right?

I did some research before I bought my home and if you can handle the topsy turvy of it all, people with variable rate mortgages generally pay less for their mortgage than someone with a fixed rate, and historically, the general trend for interests rates is a downward one.

That's a good point. In a market other than this one, a five or seven year reset is not necessarily something to be scared of. I don't know that I'll be in this place that long - probably not, in fact. But it relies on being able to sell or refi before that reset happens (or on interest rates trending well, but that's more of a plan b, I think). People assumed/were told/believed that there would be no problem doing that. In some, maybe a lot, of cases, that was a stupid assumption. But not crazy, by historical standards.

(And given that we've spent the last few days watching Lieberman whisper into McCain's ear - it can hardly be a surprise.)

Yeah, they're clearly BFF and have been for a while. But it still sticks in my craw.