[Hydroshock]

So? I am not talking about your neighborhood or mine. I am talking about sound banking and economic policy. And again I say it is very hypocritical of many who for years have decried any form of governmental regulations or intervention to now be screaming for if, like Mr. Cramer is. What is stopping the mortgage companies from offering to convert all the arms to 30 fixed loans at 4% interest. Nothing, but the fact that it does not help them it helps the home owners. They do not care about the homeowners as they claim. They are running scared.

[DCPatriot]

Geesh...do you think those mortgage loans are portfolio products?

These mortgages are backed by pension funds and life insurance companies and the like. They're the ones that will have to take a hit on the return on their investments.

And we're not necessarily speaking about the resetting of the interest rate here.

If a 720 FICA score mortgagee has to sell his $750K executive home with a 748K balance of mortgages...that can only sell for $675K...before paying real estate fees and seller subsidies for the buyer...that's a problem.

And it can all be traced down to the lower end of the market if Pedro OR Peter can't afford to buy their 1st home.

It's really a deadly perfect storm scenario working here. A lot of factors.

Not enough qualified 1st-time buyers create gridlock on the move-up market.

A volatile interest rate market which historically overreacts...as Wells Fargo did on the fixed rate jumbo product earlier this week.

Supply and demand...glut-filled inventory in the majority of neighborhoods.

Oh...it's going to get REAL ugly this time....and I was around for the last two...in 1981 and 1990.