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

To: Ramsey Su who wrote (37741)	8/4/2005 9:47:01 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

We really need Tom discussing this, because the small print on these loans is critical. I'm sure there are very stiff penalties for just turning around and doing a refi on teaser pay option mortgages. Besides they can't afford a fixed, triples their P&I. If rates stay here, all the avenues of escape have been removed. Mortgaged servicing for debtors is going to get much more expensive, pure and simple. VIX pops over 12.0, they hosed it down yesterday when it was up there, but looks like volatility wants to get out of the box. Only thing holding up are the energy and commodity sector indexes,

To: Ramsey Su who wrote (37741)	8/4/2005 10:40:28 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

As critical as anything appear to be the local appreciation rate. Appreciation like we've seen in the bubble markets will correct a lot of problems folks might have. But as you can see with current record foreclosures in many flyover country markets already little equity and a change in their personal situation such as job loss/health problems/divorce gets people to walk no matter how low the payment on an ARM. Add it all together in the bubble markets a tsunami will develop.