Mortgage Miscalculations
The push for increased homeownership led to the proliferation of risky mortgages with misleading teaser rates. Many borrowers assumed they could refinance before the rates reset, ignoring the potential for rising interest rates or falling home prices. This widespread groupthink, fueled by decades of stable housing markets, resulted in a dangerous underestimation of default risks, as even credit rating agencies failed to foresee the impending crisis.In this clip
From this podcast
All Else Equal: Making Better Decisions
Ep16 “The Value Of Protecting Unpleasant Speech” with John Paulson
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