I don't have a variable rate on a credit card even though I never go into debt, so why would I want it on a $200,000 up-front debt?
"When disagreeing, please reply to the argument instead of calling names. E.g. "That is an idiotic thing to say; 1 + 1 is 2, not 3" can be shortened to "1 + 1 is 2, not 3.""
"Nothing you said about mortgages appears to be true".
"The root cause for the current crisis seems to be the excessive use of leverage.
To take an example, a company with a net worth of US$ 25 billion borrowed 26 times its net worth and creates leveraged funds of US$ 650 billion to invest or lend them. When a small portion of the company's investments turns bad, as is the norm for the industry, the company's capital is under threat. To put things in perspective a 3.8 percent misjudgment in their books was enough to wipe out their shareholders' capital of $ US 25 billion."
http://economictimes.indiatimes.com/Features/Financial-Times...