Someone will be getting a haircut

My DW had her haircut yesterday, so she talked to her hairdresser. Turns out, the lady has an interest only mortgage, a.k.a. very expensive rental from a bank, $600K, and a house that is basically in tear-down condition. She figures, it needs another $600K of work. So, she was wondering what they should do... Funny, ha? Oh, both her and her husband are self-employed, so they would only qualify for an Alt-A mortgage. Did I mention that she has 2 babies, and a used BMW? She does own her own 'business', but I doubt she makes more than $100K.
Part of me wants to feel bad for these people, but then again, I can't be sincere in it. They'll get what they asked for. It used to be that you get eaten by animals if you were not smart - now, it is just loosing your shirt and mind.
The party continues. The stock market stopped falling, temporarily, but I expect the real deal to start in October.

On another note, my in-laws were in town last weekend, so I've flipped through a used-house salesman publication, and I found my new real home of genius (sorry, Dr. Housing Bubble, I hope you won't mind), that I have to share:
A 2007-built, 2 bedroom, 2 bathroom townhouse, in the industrial area of town, 30 yards to the 101 freeway. Price - $2,000,000 :-). That is $1,000,000 per bedroom. I think this developer is a little late to the party, don't you?
The picture of the winner is shown above - now, the location is what really matters - note the freeway and different industrial facilities around: