john_stuart_mill
case-schiller-plus-leverage-jul-2011
The graph shows indices of leverage ($ Principal per $1 monthly payment) lagged forward 30 months, and metro home prices.
Americans switched from 30-yr fixed to ARMs and Neg-Am's as the Fed kept short interest rates falling (and leverage skyrocketing). From 2004-2006 they cranked up short rates and BURST the bubble.
(Leaving millions of homeowners STRANDED when they hit their "resets" and couldn't roll debt over without doubling their monthly payment.)
(Note on the Neg-Am rise recently: These are calculated figures ... try getting approved for one -- they're off the table)
case-schiller-plus-leverage-jul-2011
The graph shows indices of leverage ($ Principal per $1 monthly payment) lagged forward 30 months, and metro home prices.
Americans switched from 30-yr fixed to ARMs and Neg-Am's as the Fed kept short interest rates falling (and leverage skyrocketing). From 2004-2006 they cranked up short rates and BURST the bubble.
(Leaving millions of homeowners STRANDED when they hit their "resets" and couldn't roll debt over without doubling their monthly payment.)
(Note on the Neg-Am rise recently: These are calculated figures ... try getting approved for one -- they're off the table)