Posted on 10/05/2009 2:37:40 PM PDT by Kartographer
Millions of adjustable-rate mortgages are going to reset in the coming years, possibly to higher interest rates, creating the prospect of a new round of foreclosures.
(Excerpt) Read more at washingtonpost.com ...
In my particular county, the shortened the due date. I believe they made it a month early so they could make the public employee payroll for Christmas.
Higher rates? People are going to be resetting lower if anything.
WaPo behind the curve on this one.Looks like CYA in case it hits the fan.
Schiff and MANY others have been warning of this for a long time.
Resetting lower? I don’t see how ,, most of these are going from teaser rates or “pick a payment”/”negative ammort” to some baseline rate plus a few percent.
Those are the option ARMs but even then, if they are indexed to LIBOR or average of treasuries the rates are still going to be low.
The credit cards and prime loans are about to walk the plank. This second phase of credit defaults is going to dwarf the subprime credit defaults. The U.S.Banking system is being kept afloat by deluding the public, and the Chinese, Russians, Arabs, and Japs are planning to dump their dollars. The monitization of our debt has already begun. This is how wars begin. Or, if we are lucky, we will wimper quietly and go straint to a socialist state. This time next year will have brought the reckoning. It is going to get as bad as we can imagine.
Those are the option ARMs but even then, if they are indexed to LIBOR or average of treasuries the rates are still going to be low.
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What happens when (advertised) inflation is double digit for the next ARM adjustment. Or if the London Interbank rate jumps up because ALL countries except the USA have raised rates (like in the 30’s) due to their economies improving.
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