That is exactly what mean

, Thanks for the clrification. If the house price go down further, not only do not you get your full interest, but also you lose principal. Of couse, if the price is up, you may get your principal back. SO, tell me, if you are the creditor, do you want to do this for 7%?

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I will lend him money if he offers 10% haha -miat42- 给 miat42 发送悄悄话 miat42 的博客首页 (0 bytes) () 06/26/2008 postreply 08:18:37

10% -Wisdom101- 给 Wisdom101 发送悄悄话 (116 bytes) () 06/26/2008 postreply 08:39:48

10% is too low if your expected hyperinflation does happen. -stap- 给 stap 发送悄悄话 (18 bytes) () 06/26/2008 postreply 09:02:36

Very logical because the loan term is only for ONE YEAR -miat42- 给 miat42 发送悄悄话 miat42 的博客首页 (0 bytes) () 06/26/2008 postreply 09:06:30

You have no idea what hypeinflation can do in just 6 months- -stap- 给 stap 发送悄悄话 (29 bytes) () 06/26/2008 postreply 09:35:02

how about hyper inflation to wipe out leveraged debts? :) -山高月小- 给 山高月小 发送悄悄话 山高月小 的博客首页 (0 bytes) () 06/26/2008 postreply 09:40:42

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