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

To: carranza2 who wrote (25921)	12/1/2007 2:20:02 PM
From: KyrosL	Read Replies (2) \| Respond to of 217616

The conventional wisdom is that ARMs are bad. This is false. Here on SI many are excoriating Greenspan for suggesting that people get ARMs. But Greenspan was right. ARMs for people with good credit, and a reasonable downpayment have actually been much better than fixed rate mortgages and will probably continue to be better for the foreseeable future. Given that the average holding period for a house is seven years, Greenspan's advise was excellent for the average homeowner.

To: carranza2 who wrote (25921)	12/1/2007 3:44:37 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 217616

That's how I see it too. But since my plan is to usurp the US$ and other currencies, they will all be worth very little in a couple of decades, so their interest rates will go very high when people get wind of my plans [which are top secret and not to be mentioned in public]. Interest rates will have to go high [to belabour the point for other readers who might not see why] because lenders will NOT want to hold a declining currency and will need high interest rates to compensate for the declining value of the principal. So, if you could score a 20 year or 30 year mortgage at 6% and hold onto it for the duration, it would be almost like a gift of free money. If Big Ben offers me interest free money, or near to it, I will take all he has got. But of course, only if he will lend it at 0% for 20 or 30 years. I wouldn't want to have to get another loan at open market rates in 5 years!! Rates then might be 45%. Mqurice