[A CA Guy]

The only way you avoid problems is to only loan to people based on the fully adjusted ending higher rates, not the initial teaser rates.
No look loans, 100% financing and all that were destined like Obama to fail the people.

[muawiyah]

The Fed persisted in raising discount rates in the two years before the big crash. They were fighting “inflation” but it turned out to be “deflation” ~ so much for bankers to understand the difference.