Speculation a The"hedge borrower , who expects to make debt payments from cash flows from other investments a The" speculative borrower ,who borrows believing that he can service the interest on his loan but who must continually roll over the principal into new investments a The"Ponzi borrower who relies on the appreciation of the value of his assets to refinance or pay off his debt while being unable to repay the original loan a Speculative borrowing has been cited as a contributing factor to the subprime mortgage crisis.S li pecu ation  Th "h d b The "hedge borrower," h k d b " who expects to make debt payments from cash flows from other investments;  The specu a e o o e "speculative borrower, o bo o s be e g a " who borrows believing that he can service the interest on his loan, but who must continually roll over the principal into new investments;  The Ponzi borrower "Ponzi borrower," who relies on the appreciation of the value of his assets to refinance or pay off his debt, while being unable to repay the original loan.  Speculative borrowing has been cited as a contributing factor to the subprime mortgage crisis