I had begun to worry about the housing market back in 2003, when lenders first resurrected interest-only mortgages, loosening their credit standards to generate a greater volume of loans. Throughout 2004, I had watched as these mortgages were offered to more and more subprime borrowers - those with the weakest credit.

One of the risks for anybody in the lending business is that being conservative can harm your competitiveness.

Regardless of what the future holds, intelligent investment in common stocks offer a solid route for a reasonable return on investment going forward.

Michael Burry Quotes