Comments on: ARMageddon? Neh .. not until Christmas, anyway.

By: Wall Street to Main Street | The Cosmic Tap

Wall Street to Main Street | The Cosmic Tap — Mon, 13 Aug 2007 21:43:50 +0000

[...] week we talked, half-jokingly of course (wink-nod), about ARMageddon and Wall Street shenanigans. A short conversation ensued. One of my favorite doomsayers – James [...]

By: Josh

Josh — Mon, 06 Aug 2007 20:49:35 +0000

Exactly, but consumers are more worried about mortgages than the dollar. Instead of letting the free market take care of these idiots, we’re going to bail out the mortgage holders and banks with an interest cut…All politics are local…

By: Anthony

Anthony — Mon, 06 Aug 2007 19:00:35 +0000

The Fed is in a nasty place.

They can raise rates and cause a bloodbath on Wall Street – hardly palatable especially in light of current volatility. This, of course, would reverberate broadly throughout the economy.

Alternatively, they can lower rates and possibly send the dollar off the cliff it’s been teetering on… it’s been in freefall over the last couple of years anyway due to several factors, including our unlimited appetite for debt, our adventures in the middle east, etc… This too would create great pain in the economy but it’s probably the “best” option despite the high likelihood it will bruise the dollar very badly.

Frankly I think they’ll sit still tomorrow and pray – but I’m no economist.

By: Josh

Josh — Mon, 06 Aug 2007 18:49:35 +0000

By: Josh

Josh — Mon, 06 Aug 2007 18:42:44 +0000

The chart assumes the Fed doesn’t reduce rates, which the smart money says they will have to reduce rates soon before it starts dragging down the economy. Having said that, I have no sympathy for either the borrows who overextended on an ARM or the banks crying mercy. The smart banks minimized or sold off these high risk mortgages.

The free market is a beautiful thing, it weeds out stupid people and companies. Unfortunately the Fed will have to come-to-the-rescue again to prevent the stupidity from spreading…

By: Anthony

Anthony — Mon, 06 Aug 2007 17:00:35 +0000

The Fed is in a nasty place.

They can raise rates and cause a bloodbath on Wall Street – hardly palatable especially in light of current volatility. This, of course, would reverberate broadly throughout the economy.

Frankly I think they’ll sit still tomorrow and pray – but I’m no economist.

By: Josh

Josh — Mon, 06 Aug 2007 16:42:44 +0000

The free market is a beautiful thing, it weeds out stupid people and companies. Unfortunately the Fed will have to come-to-the-rescue again to prevent the stupidity from spreading…