No comments today, just wanted to share a good news story found in the Orlando Sentinel this morning. Pretty excellent piece on what’s really happening in the housing market, what variable rate ARM’s are about to do, and what greater ramifications we can expect.
If the worst fears about these loans materialize, the economic damage would likely extend well beyond the United States because much of the debt has been packaged into securities sold to pension funds, banks and other investors around the world who were hungry for high yields. The fallout could also further depress housing prices, leaving U.S. consumers feeling poorer and less likely to buy the merchandise imported from overseas.
