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  1. bf I don’t think it was the ARMs it was some of the crazy products out there, especially balloon mortgages and interest-only ARMS. If a guy took out a no-downpayment loan for 200k for a house worth 200k, then figured when reset hits the house will be worth 300k and he’ll just refi again, well, at some point the music stops. The music stopped, the house went to 150k, no refi possible.

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