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User Info	Bush freezing adjustable interest rates; entered at 2007-12-02 14:51:34
Mtgspy Posts: 6202 Registered: 2007-10-27	mullet: mullett ... look at my post somewhere today in ABX thread.... 15 months old ARM2/28 - actually 25% of it is FIXED rate. They're in teaser fixed period and are 25-30% delinquent. The # is increasing 2.25% a month more into default. By reset, in 10 months, on average 40-50% of it will be default. Why continue the magical thinking? Doesn't at some point exhaustion simply take over and we really admit that 0% mortgage still implies 10% interest rate built in if you buy a house right now? Don't believe me? I am smoking something potent? Take 3 yr investment horizon, house dropped from 400 to 300. That's the REAL GEOMETRIC DEFLATIONARY RETURN BUILT IN on a house at 0% interest rate. Everything else is icing on the cake, really. Till housing leaves enough money to comfortably eat, cloth, and pay for gas we might as well throw in the towel. 2007-12-02 14:51:34