They rationalize this bias so consciously, they think it's correct based on the data, when in actuality they're cherry picking data that confirms what their sub conscious is telling them.

Their is no logical rational for the CA market aside from too much money in the hands of people that do not understand the value of money.

The secret is to think like a REI...and not a homeowner.The numbers, and effect of the exact same numbers, are 180 degree different...in ALL cases.The numbers don't lie, so never argue with them (i.e. rationalization = most expensive word in a REI vocabulary...so never use it)...you will lose every time...and most likely never realize it, or how much.

It is not always rationally explained. 

So, no attempt to alter anyone's strategy ... just, maybe, hopefully helping articulate how some of these crazy appreciation-favoring folks are behaving rationally and objectively with the same risk-aversion of others.This stuff is more fun to discuss with a glass of wine in hand...

Yeah, when we see something that moves us in such a way, well, we try to rationalize the quickest and easiest path to recreate it.

Logic does not sell, emotion sells.And remember one other thing: We buy for emotional reasons, we rationalize and defend our purchases with logical reasons.Think about buying a car, you don't think about the total payments, you think about how it feels and the status you get.So keep the motion high when you doing this 3rd step.Next - Getting the lowest price on wholesaling deals.

Eddy, as a laymen will make a rational decision based upon his own bias and desires to continue to eliminate or simply isolate one of the 5 investments to make.

Hoarding is an emotional/mental issue that can't be addressed by rationality.

I doubt there will be any crack down at all in this area under the CFPA recently passed.When I made loans, my persistency ration was over 97%, people did not pay for any fees except a credit report until I knew the loan would be funded!