Saturday, October 06, 2007

Mortgage Meltdown 2007

The title I stole from

Pretty amusing. Here's what's NOT amusing.....

Mortgage Meltdown

Whiskey Tango Foxtrot?

From the article when talking about borrowers who had bought way more house than they could really afford by getting an ARM with low "teaser" rates to make their payments low.....essentiall either betting on a huge change in household income in a couple of years or (more likely) continued appreciation bailing them out (yeah, that's responsible)....

"'Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it,' Federal Deposit Insurance Corp. Chairman Sheila Bair said in prepared remarks at an investor's conference. "

THAT is the solution being proposed by the CHAIRMAN of the FDIC? Yeah, no moral hazard there....

To quote the venerable Mogambo guru, "We're DOOMED! DOOMED I say!


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