Option ARM and Alt-A Resets on the Horizon

By on May 23, 2009

This subject has already been covered, but Joe Weisenthal at Clusterstock brings it up again. The implications for the economy and equity market can only be negative, however, the extent to which it has already been discounted is unknown. Since interest rates are relatively low, the ill effects may be muted. If we see an increase in rates beyond what we’ve experience recently, there could be major trouble ahead.



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