I remember thinking in 2002-2003-2004 that we'd pay for the insanely low rates down the road...

I know people are dumb, but how dumb do you have to be to buy an interest-only mortgage when you won't be able to make the payments at 5% interest? Or perhaps I should ask, how dumb do you have to be to lend money to the type of people who can only afford an interest-only mortgage when rates are sub-3%? Do we really want to subsidize the dumbness of these groups?

I was reading about LTCM 1998 today, that was like 1 year before I noticed stocks, etc.; it's fascinating and sort of familiar to what's happening now, in a way, i.e. people dumping $ into levered private equity they don't understand the risks of, and when things go bad all hell breaks loose, then everyone needs to get "bailed out".