Tuesday, August 13, 2013

Weiner Isn't The Only One Who Isn't Reformed

Commentary by Roger Erickson

Americans Gambling on Rates With Most ARMs Since 2008

Quicken Pitches ARMs as Borrowers Balk at Higher Rates

Misfit Borrowers Attracting Lenders as Housing Revives

Chicago wants to lead the way ... to where?


And did I mention variable rate car loans? You heard that right.

A foolish population and it's assets are soon separated? Again, and again, and again? Anyone noticing a boom/bust/pitchfork/boom/bust/pitchfork cycle at work?

Ask your grandparents if this all looks a little familiar. They saw it all in the 1920s-1930s. And before that, in the 1910s-1910s too. And countless times before that.

When do grandkids get to stop relearning lessons their grandparents learned the hard way, and their parents either forgot, or never learned? You might want to rethink how YOU "educate" YOUR kids. You know, in case THEY ever become parents someday.





1 comment:

The Rombach Report said...

Yes, ARMs making a come back and at just the wrong time. Very much like the 2001 to 2007 period when ARM's and Minsky like Option ARMs became all the craze. The worst loans are always made at the top of the market. People are surrounded by rate derivatives embedded in their mortgage structures like the cap on how high or low an ARMs rate can go when the rate is re-set.