I wonder what would happen if everyone in the world assumed that.
Zylar asks "I wonder what would happen if everyone in the world assumed that?"
You would get a Self Fulfilling Prophecy.
Then people will get a rude surprise.
The loan officers apparently did assume mortgages worked this way...
hahaha, that is almost the way stock trends are analysed. the market is asumed to be exponential, and there is no good method to separate a bursting bubble from noise.