Interest-Only Mortgages All the Craze: "'When this market adjusts, it's going to be painful,' said UCLA economics professor Edward Leamer, who has been warning of a California housing bubble for three years. 'Borrowers are getting in over their heads, and lenders are too.'" —AP via Yahoo! News

During Bubble 1.0, a friend of mine borrowed against unvested ISOs to buy more shares of the same company on margin. I think he now lives in a cardboard box.