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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (23057)	9/25/2007 8:10:54 PM
From: TobagoJack	Read Replies (3) \| Respond to of 217917

<<We just hit the peak of "ARM resets" for this housing cycle>> ... the reset will be reset again, and again and again ... until what i sold for 100 can be bought back for 25, or less, adjusting for tax bite, currency demise, and nominal price discount

To: Snowshoe who wrote (23057)	9/25/2007 10:41:40 PM
From: elmatador	Read Replies (1) \| Respond to of 217917

It was with that we were hit in 1982: "adjustable-rate mortgages began paying higher interest rates this month" Brazil got the bait, swallow it and then Paul Volcker started reeling in with doble digit intetrest rates. It too more than 15 years to recover. I don;t know how this is going to play, but some people will pay. Because not wanting to lose the house, they will pay and cut the spending elsewhere.

To: Snowshoe who wrote (23057)	9/26/2007 8:40:53 AM
From: Ilaine	Read Replies (1) \| Respond to of 217917

I had read that the peak of resets would be October. Interesting that it's September. At any rate, the pain comes down the road, after the homeowners try to salvage the deal by throwing every penny into the black hole that is their mortgage. Yesterday I heard a lawyer advising a client to refinance his house since he still had equity, and use that to pay the mortgage. Unbelievable! But that's what people are doing. They're hoping the housing market will come back high enough that they are no longer at negative equity and can refinance at a lower rate. It's not like buying shares of stock that lose value. When your house loses value, but your mortgage goes up, you're paying maybe $3000 a month for a place to live, while down the street another family is renting the same house for $1700. Crazy. Or maybe I just don't get it.