Comments on: The problem remains

By: altesino

altesino — Wed, 15 Oct 2008 02:51:25 +0000

Looks like it will be a rollercoaster for the months to come. my 5 year arm is up in april and is tied to the libor.

By: morganb

morganb — Tue, 14 Oct 2008 15:49:20 +0000

No ones talking about it because it's not the shiny object in the water
right now. It's still a massive problem. I'm planning on a series of posts
about this stuff going sideways and where we're really going to see another
pinch.
And of course, we'll hold all the losses (the American taxpayers) while the
assets will be sold for pennies on the dollar to big
corporations, sovereign wealth funds, etc.

By: Don

Don — Tue, 14 Oct 2008 15:04:03 +0000

What I'm asking, and Morgan please step in, is who is going to end up owning all the “bad paper”? When I say bad paper, I mean the $420b of ARMs that are resetting in less than three years. As real estate values continue to fall, and job losses mount, we're in for a repeat of this year in 2011. If we don't get those loan modified or refied, what the HELL are we going to do? No one is talking about it except for this blog and a few of my friends.

Did I miss something or am I going insane? Morgan????

By: mortgage

mortgage — Tue, 14 Oct 2008 07:11:39 +0000

try to visit my website and find out more about it.

By: Nelly

Nelly — Tue, 14 Oct 2008 01:12:09 +0000

Cannot the USA just kick off 10 yrs of inflation at 5% plus ?

The Fed has a massive balance sheet now. To date, its action has been neutral on the money supply. Sell T-Bills, buy Private Assets.

However, that is easy to reverse, especially upon such a large balance sheet. Let the money supply out.

Then all the gains of the debt holders, holding the longest term debt. The Chinese & Middle East shall become worth far far less.

And the real value of the debt on housing may also fall. Incomes would rise faster and workers would be locked into working as hard and fast as possible. Just like how the US likes them, so they are malleable to social engineering.

Heck, the fiscal stimulus touted would greatly advantage the kicking off of inflation. It just has to be let run too long.

So Deflation or Inflation ? It seems to be something in the hands of US policymakers to decide upon. According to their own interests.