"Emancipate yourself from mental slavery, none but ourselves can free our mind.” - Bob Marley

Sunday, December 14, 2008

It's not JUST Sub-Prime - and it Never Was

For those who have missed the memo, CBS's 60 minutes has nice pictures and graphs. Video at:

Alt-A and Option ARM Loans to be bigger mess than Subprime

For those of you that still like your blinders: just keep waiting for that 2nd-half 2009 recovery.


OBloodyHell said...

> CBS's 60 minutes

Oh, yah, bob. Cite 60 minutes as a source... Are you planning on quoting the National Enquirer next? They do occasionally get something right, too.


bobn said...

That was just the latest (at the time) and most accessible. If you'd look at some of the econ blogs in my blog roll, you'd see that they've been talking about this forever. Subprime was just the beginning; Option ARMs will be an even more complete disaster.

Here's Bloomberg - scroll down for the good parts about Alt-As and Option ARMs:

"Option ARMs allow borrowers to pay less than they owe, with the rest added to the principal of the loan. When the debt exceeds a pre-set amount, or after a pre- determined time period has passed, the loan requires a bigger monthly payment.

Property owners with option ARM mortgages can see payments double at a time when home values are tumbling,"

Ah yes, that will work out well. Remember last year when you were so sure we wouldn't have a recession? Who was right then? The blogs I read that you don't - that's who.

bobn said...

Oh, look, here's a post of my own about this from LAST AUGUST.

About Me

I'm a 57 year old geek. I voted Democratic for 20 years, because I disliked the Republicans more. But now, nobody really speaks for me. I'm for Guns, for more correct government regulation of the financial world, against illegal immigration and amnesty. (in 2008 I ended up voting Republican - too many questions about Obama, and voting against anybody who voted for TARP 1.) In 2010 I voted a stright republican ticket because the Democrats have completely lost their minds.