Interesting New Yorker article, via BoingBoing.

Oh, and this weeks Grand Rounds is up.

Coming from someone that’s leaving a job in the financial industry and seems to have a good understanding of how the markets work, he sure seems risk averse.

But, to offer my two cents: The banks are in the business to make money and they are going to try to make the most money possible in the shortest time, interest only products have got to make the balance sheet more attractive. Think about it: customers are choosing to delay payment even more on a huge debt (in this case $211,000), so the total interest paid is much bigger than a traditional mortgage, boosting profits for the bank.

I agree with the post 100%, if you can deal with the risk, take the plunge and flip the property for a profit before you have to pay any principal. But, my pessimistic ways would give me an ulcer if I knew we were going to have our mortgage payment double in 3 years. And, the bottom has to fall out someday, having what equity you gain tied up in the next property you buy when that happens is going to hurt.

$179,000? Sure, just let me find my charge card. With metaphors like this:

The SL65’s rear tires aren’t just bringing a knife to a gun fight, they’re bringing a pair of left-handed safety scissors to a nuclear war.

How could anyone resist? (Via Jalopnik)