It appears that the golden state is gonna need to find a lot more gold to pay for all the new mortgages that people are taking out. 82% of new loans are interest-only or "option-ARM".

I really have a tough time at parties. Everyone wants to talk real estate, but I always manage to make some comment about crazy interest-only loans. Inevitably, at least one person says, "hey, I have one of those" or "honey, don't we have one of those?"... that pretty much ends the real estate conversation, as everyone kinda wanders away to get another drink, etc.