Buffett: "My guess would be that if unemployment doesn't rise significantly, and interest rates don't go up dramatically, it will be a very big problem for those involved, but I don't think it will trigger anything of a massive nature. I've seen where you make sub-normal payments and then you have to make above-normal payments later on, and to me that's dumb borrowing. If you can only make 30 per cent of a normal payment in the first year, it's very unlikely you can make 110 per cent a few years later. It works as long as house prices keep going up, but not when you get an abnormal supply of houses coming on the market. You'll see plenty of misery in that folly."