http://blogs.marketwatch.com/greenberg/2007/12/straight-talk-on-the-mortgage-mess-from-an-insider
Straight Talk on the Mortgage Mess from an Insider
12:11:23 PM December 6th, 2007
Herb Greenberg is senior columnist for MarketWatch. His column also appears in the weekend edition of the Wall Street Journal.
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Values are down and these are interest only loans, therefore, many are severely underwater even without negative-amortization on this loan type. They were qualified at a 50% debt-to-income ratio, leaving only 50% of a borrower’s income to pay taxes, all other bills and live their lives. These loans put the borrower in the grave the day they signed their loan docs especially without major appreciation. These loans will not perform as poorly overall as sub-prime, seconds or Option ARMs but they are a perfect example of what is still considered ‘prime’ that is at risk. Eighty-eight percent of Thornburg’s portfolio is this very loan type for example.
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It appears that this mess is not even begun to be cleaned up. Remember the post 9-11 FED with its multi-year near zero interest rate? That’s the cause. Now the PREZ is going to “save us all” with some type of sub-prime bail out.
Fools! The sheep are fools. Just Fools!
It’s immoral for politicians to steal money from the productive class to bail out the unproductive class.
It’s just makes people make even worse decisions.
Hopefully, you’ve been putting away your gold coins. Perhaps, this is truly the end of the Republic.
Messing with the money is always a sure sign of the end.
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