I agree with most of what you said except for the first line: there is no "justifiable reason" to take out a risky adjustable-rate mortgage when fixed rates are at the all-time lows we have now. The only reason I have ever seen (not "justifiable", IMO) for people to take out an adjustable in today's climate is because they love the lower payments they will have for a year or two or three - - in other words, "instant gratification".
When shiite happens to people, or the payments on their ARMs jump up (see: several FR threads about all those poor souls "who find they can no longer make the payments") I simply cannot have any sympathy. Sorry. "Financial Darwin" may be a tad harsh, but PT Barnum (or somebody like that) said it best: "There's a sucker born every minute."
Regards,
LH
It's justifiable to the person making the decision at the time. Best intentions...and all that. ;^)