Many economist are saying get ready for the October Surprise!
Another wave or Mortgage Rate Resets! Just like the kind that started the bailouts we oh so love!
My question is if the holders of the mortgages are currently making money and IF the rate goes up causing a default wouldn't you just NOT raise the mortgage rate and allow the person to keep the house?
What exactly happens to a house that sits empty for any period of time? What are these idiots going to do with these thousands of empty houses that nobody will buy?
Are these idiots TRYING to crash the economy on purpose?
Worst of all look at the peak of ARM Rate Resets in 2011.
What will most likely result is a devaluation of the actual value of the greenback and then people we are in real trouble. Depending on how much the greenback devalues we may see our beloved USA become a third world country.
Aren't most ARM resets tied to the WSJ Prime Rate? All the ARM notes I've seen across multiple mid-tier institutions have been. Unless the Fed gets crazy between now and then I wouldn't expect that 2011 spike to be a problem for consumers.
ReplyDeleteAs long as the exchange rate regime can be maintained I don't think Americans should be very vexed. More people in Africa and Asia may starve to death perhaps but who cares about them anyway.
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