The Second Wave of Monetary System Failure – Option ARMs and Alt-A loans
Option ARMs and Alt-A loans this will be worse than the sub prime mortgage crisis. Ordinary ARM loans, which are riskier than fixed-rate loans, apparently arent risky enough for many borrowers. The MBA says that their market share fell from 46% in the second half of 2004 to 36% in the first half of 2005. Why? Partly, it seems, because more people chose option ARMs. Those, of course, are specialty ARMs that give you the option to pay even less than the monthly interest you owe. The unpaid interest gets added onto your principal (negative amortization). Option ARMs climbed from 17% to 23% of first-mortgage originations.
Then there are alt-A loans—the ones you get when you dont submit all the documentation that would be required to qualify for a straight loan. Those are usually chosen by people who have unsteady sources of income—or simply have too little documented income to qualify for a straight loan for the house they want to buy. The MBA says alt-A loans share rose from 8% to 11%.
The average person lives in their home for only 6 years according to the National Association of Realtors. During that time a person only pays less than 8% to the principal and a whopping amount to interest. Of course the Mortgage Bankers Association does like this loan; they want EVERYONE paying the largest amount of compounded interest money to the bank instead of putting it into a personal retirement account earning compounded interest.
When a person applies the monthly savings to a personal retirement account earning compounded interest, over the years, this will yield them hundreds of thousands of dollars when the program is managed by professionals.
A penny doubled every day for 30 days is $1,000,000. We all heard that when we were children. Well banks use that ‘formula’ to get wealthy.
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LIVE WITHIN YOUR …
LIVE WITHIN YOUR MEANS! If you want to get rich set up a factory, go into agriculture, don’t speculate! Invest in real people and the real economy
I see a budding war …
I see a budding war profiteer, sigh
good one!!
good one!!
you will when there …
you will when there are riots and potential wars from extreme systemic imbalances, although judging from your username you might be into that sort of thing.
You will, when you …
You will, when you lose your ditch digging job!
who gives a fuc-k
who gives a fuc-k
I was just joken
I …
I was just joken
I know!
This is more than …
This is more than just an american problem.
So, what are you …
So, what are you going to do with your gun?
Kill Wall street – …
Kill Wall street – this is your answer? Borg….wtf?
Let’s not blame …
Let’s not blame this on “America”. This is a contrivance of Wall Street. Just because Wall Street is physically located in the USA, does not mean it represents the American people. Wall Street is like the Borg of star Trek. A mindless, amoral beast, that needs to be killed.
The business to be …
The business to be in,…. is the gun business.
Death To America!!!
Death To America!!!
I think he’s …
I think he’s exaggerating. In the last decade, oil was big business, but did the workers of the oil companies make the big bucks? No, it was the owners of the companies. So if farmer does as well as he says, the owners of farm corporations will do well, but the farm workers won’t(except for the agriculture engineers of course).
Nice work. keep it …
Nice work. keep it up. mean time come for social media marketing for esteembpo**com
1.Cover your mouth …
1.Cover your mouth with your hand.
2. make a wish into it.
3. close your hand(make it into a fist)
4. hold your hand(the fist) to your heart for five seconds
5.send this to 3 more videos
6. Tommorw will be the best day of your life
just like jim …
just like jim rogers says. the famers and miners will be the next millionaires and the banking elite will be bankrupt.
Other countries are …
Other countries are probably going to be worse than us and eventually China is going to cash in what’s left of the trillion plus dollars they lent us before it’s not even worth the paper its printed on and this will lead to the crash of the dollar. 1000 dollars for a bag of wheat!?!?!?!?!? We should let all these greedy bastards go bankrupt and reorganize.
the stock market …
the stock market will lose 90% of its value. Then inflation will hit after confidence is lost in the bond market. This is inevitable. I’d be looking for another country to move to right about now.
What if your …
What if your landlord defaults on your rental? Renters are not necessarily free from the mortgage crisis. They may still be impacted depending on their landlords behavior.
damn this is an …
this is an important vid
America is fucked! …
America is fucked! Huge violence coming! People will just go mad!The is going to hit the financial fan!
This is fucked. …
This is fucked. THis is looking really scary for a good decade.
America is fucked! …
America is fucked! Second and third wave of toxic morgages is going to kill off the economy! Lol-”Exotic”! How the can u call it “Exotic” is beyond me! Thank god I don’t have a morgage or any loans to repay! The is going to hit the fan, big time!
i hope the money …
i hope the money gurus will make same miracles, yes that’s what we need..