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

To: t4texas who wrote (13757)	5/12/2004 10:59:40 PM
From: TH	Read Replies (2) \| Respond to of 110194

t4texas, Read the fine print on this "popular" loan. rockfinancial.com Click on the upper left "3 year Smart ARM". "Rate is variable and subject to change. Interest-only for 3 years. After the initial 3 year, fixed-rate period the rate will adjust every 6 months. The interest-only payment on a 30-year $300,000 3-year Adjustable Rate Loan at 2.75% and 80% LTV would be $687.51 with 3.25 points due at closing. After the initial fixed-rate period, the principal and interest payment is $1432.59. The Annual Percentage Rate is 3.612%. Rates could change daily. Actual payments will vary based on individual client situation and current rates." I think there will be many homes available cheap when that three years is up, without any increase in rates. Good Trading TH

To: t4texas who wrote (13757)	5/12/2004 11:03:48 PM
From: TheSlowLane	Respond to of 110194

What a riot. How about the 110% mortgage* where they even throw you some dough to furnish that house that you "own"? To me, that looks like extreme cleverness that is about to transmogrify into extreme stupidity...and a whole lot of people thinking "What were we thinking?". Regarding other recent posts...the Vonnegut piece was brilliant...and chilling. $40-plus oil? Coxe said this about that: "If oil busts through forty dollars, you’re looking at real problems, if it goes through, say, forty-five, for China and Japan. Some of the nuclear reactors were stopped in Japan, they replaced it with oil. China will be importing more oil this year for electrical power generation than it did four years ago for all purposes. China is installing as much electrical generating capacity this year, new capacity, as exists in the entire United Kingdom. So the sheer scale of what is going on here means that for China to still peg the Renminbi to the Dollar - if oil bursts out on the upside - is a losing strategy and one of the ways they could both cool off their economy, generate profits and also protect their utilities would be to move the currency up." * Edit - reminds me of the movie Spinal Tap, where the volume dial on the amplifier went to "11". It's just a bit louder than 10.