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So, wait until the arms reset in Oct thru Apr. Also thsi happened before August.

7 posted on 08/24/2007 8:02:10 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)

Why wait? The Fed can act to preempt many of the problems that would otherwise arise from a credit crunch.

9 posted on 08/24/2007 8:04:51 AM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)

Many of the people who had ARM mortgages have in fact already refinanced and will not be effected by the reset. According to the head of Countrywide who was on the Cavuto show yesterday, that figure is at about 65@ of the ones his firm funded.

I will say it again. This whole debacle is fear driven and based on little but raw emotion. And while it is true that perception can be reality as far as the consequences of that perception, eventually the real facts will emerge, as they now are and stability will return to the markets as we are beginning to see happen.