moonman
08-25-2007, 02:51 AM
Come October, 50 billion in ARM's get adjusted upward. $1,500.00 a month mortgages will double or more. This also the single largest amount of ARM's to get adjusted in this cycle. In layman's terms if you think the Bear Stern hedge fund collapse that ripped financial markets from NY to Bonn to London to Tokyo was catastrophic, you ain't seen nuthin' yet.
How bad is it really? Consider the 1/2 point drop in discount rates has caused less than a 5% increase in the Dow. In other words, no one is buying the bs anymore. Only the paper money boys are buying now.
http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/?postversion=2007082417
"The Federal Reserve is in crisis management at the moment. However, it doesn't want to show any signs of panic. That means no rushed cuts in interest rates. It also means that it wants banks to quickly take the big charges that will inevitably come from holding toxic debt securities. And it will do all it can behind the scenes to work with the banks to help them get through this upheaval. But waiving one of the most important banking regulations can only add nervousness to the market. And that's what the Fed did Monday in these disturbing letters to the nation's two largest banks."
How bad is it really? Consider the 1/2 point drop in discount rates has caused less than a 5% increase in the Dow. In other words, no one is buying the bs anymore. Only the paper money boys are buying now.
http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/?postversion=2007082417
"The Federal Reserve is in crisis management at the moment. However, it doesn't want to show any signs of panic. That means no rushed cuts in interest rates. It also means that it wants banks to quickly take the big charges that will inevitably come from holding toxic debt securities. And it will do all it can behind the scenes to work with the banks to help them get through this upheaval. But waiving one of the most important banking regulations can only add nervousness to the market. And that's what the Fed did Monday in these disturbing letters to the nation's two largest banks."