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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: yard_man who wrote (13741)5/12/2004 10:09:46 PM
From: Gemlaoshi  Read Replies (1) | Respond to of 110194
 
Tippet,
I claim no crystal ball when it comes to the future of interest rates, although some pretty good probability scenarios could be built.

Your point is spot on...let's hope you are right! However, my point was that a lot of people with 1 or 2-year ARMS are making some VERY BIG one-directional bets if they do not hedge against the probability of a rise in rates. And they are doing it with the most important asset most of them will ever own - their Home!

As I said, basic risk management...I believe our grandparents would just call it common sense.

Dave