The Bailout Is Only Beginning

Michelle Malkin has the complete round up of what is heading our way legislatively. But it's only the beginning. Politicians won't permit the headlines to be about foreclosures in an election year. But look at this graphic. What are they going to do about 2010?

The fact is, mortgage interest rate resets have already peaked, until they explode in 2010. That's why Hillary's 90 day moratorium is such a silly political joke. And ultimately it isn't only about bailing out homeowners, it's as much about bailing out the lenders as anything else.

This year, almost $370 billion worth of first ARMs are resetting. More than $250 billion worth will reset in 2008 and 2009 and another $700 billion will do so in 2010 and beyond, the First American study estimates. Rick Chance, head of the special situations advisory group at investment bank KPMG Corporate Finance LLC, reckons recent developments are only the beginning of what he calls a "tsunami" of mortgage resets and defaults that will wash over the economy during the next few years.

Comments

[Michael Volpe]

I read what Hillary wants to do and it is nothing short of disastrous. I work in mortgages and what she wants to do will just flip the whole industry on its head. It is really too much for a comment section so here is how I wrote about it...

http://proprietornation.blogspot.com/2007/12/hillary-clinton-decides-to-mix.html

[Whiskey Tango Foxtrot]

Rates capped at teaser rates?

Moratorium on foreclosures?

The government now thinks it's a good idea to tell lenders what they can and cannot charge for a service, retroactively void legal agreements, and stop banks from taking back collateral on bad loans?

That will be great for the economy.

[Fred Beloit]

Heck, this is only a whistle stop on the railroad for Hill. Her ultimate goal is to change a law of nature, i.e., survival of the fittest to soaking of the fittest. That's just what socialists do. The thousands of greedy fools who got themselves into a mortgage mess need to be bailed out with the money of the careful and thoughtful. That's fair, isn't it...ISN'T IT?

[Fred Beloit]

Here is the kind of person I had in mind.

http://www.advicegoddess.com/archives/2007/12/going_under_in_1.html