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To: Haim R. Branisteanu who wrote (153357)	2/25/2002 10:35:32 PM
From: GraceZ	Read Replies (1) \| Respond to of 436258

ZERO interest loans backed securities or MBS' are an accident waiting to happen There is no such thing as zero interest loans. They are marketed as zero interest rate but they are sold to whomever holds them at a discount, so the interest is paid by the company selling whatever at "zero" interest. Companies do this instead of lowering prices precisely because the buyers with lower credit ratings will be suckered into buying something and paying above market interest because they won't qualify for the zero interest loan or they will screw up the payments and get charged interest. Only one in three car buyers availed themselves of the zero interest rate loans and those were people who had good credit ratings. I used zero interest rate plans all the time for buying business equipment, but I made damned sure I wasn't paying the interest up front in the price and I made sure I never paid even one payment late otherwise that interest that doesn't exist somehow shows up on the statement fully accrued at the highest rate allowed by law.