“He did not understand—none of these people did—that this is stochastic land on the edge of a stochastic reservoir. They didn’t understand it because those are statistical concepts. People can’t think statistically. People are hardwired to think in terms of narratives. This guy’s narrative was: the little missus and I want to settle down and raise a family, here’s a house we like in a neighborhood full of folks like us, they can’t all be wrong, let’s take out a thirty-year mortgage on this thing. And now he’s probably taking out a reverse mortgage or a HELOC to pay the house-jackers so he can
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