The only way someone could survive one of these loans would be to have the discipline (and the money) to pay a few hundred dollars extra each month toward the principal. But if you have the money to do that, why not just get a low rate fixed loan in the first place?
Investors that are going to sell properties before 10 years and are sure the value will go up might be OK with a loan like this, but I bet the majority of interest only loans are to young couples who can't really afford a big house and don't understand what will happen in 10 years.
You're assuming the property value will go up.
These interest only lone people have a VERY good chance of getting screwed in places like California or New York where the real estate prices are cooling off and could go down since a lot of them went too high.
I just know what Suze Orman says, and Suze makes sense.