@sfrazer434 @feld @briankrebs Never said you had to, I’m just asking what’s ok about today’s rates not being at rational levels? The long term average is 7% for fed. We are at 4 and change.

So what is ok about this? How is this assessing risk? Interest rates are a reflection of risk. Risk is always there regardless of market conditions. See the mortgage that went bad. From a fire, that was liquidated at about 30% of the appraised value. The unknowns and the risk is there. This is not a perfect world.

You see it printed in the news now, people on verge of default from storms or fires of randomness. What happens to the lender who had the low rate.

How many loans can you have go bad before payback at each percentage of rate. What is the rate loans go bad at nominal level. What is the rate they go insolvent at extreme events. How often do extreme events happen for the life of the loan 30 years just say.

These are hard questions I know but what is rational about today.