It Was in the Cards
Sometime in late 2006, I was sitting at a blackjack table in Las Vegas listening to the dealer talk about how he had just purchased his fifth home. My brain screamed out, “Wait a second! Something is just not right here! I am a senior level executive at a nationally recognized investor relations firm and I definitely cannot afford five homes (in fact, I can barely afford one in Los Angeles).” While I had no idea what the dealer’s earnings were, I was certain that it couldn’t possibly be high enough to justify five mortgages. I knew my instinct was right, but what I failed to consider at the time was the unbelievable magnitude and spiraling damages from all of the mortgage lending excesses.
Guess the house doesn’t always win.
— PondelWilkinson, investor@pondel.com
