Lets go back to 2001 - it was the events that took place that year
from which this blog is about. Did the terrorist think that killing a
great number of people on American soil was going to make America fall?
Or did it? Why the twin towers? There were a few other terrorsit
incidents in the past that were associated with the finanical towers,
but none of them struck us like this one. Hey, its been years, why is
this being brought up? Well, you can always trace today's problems to
some action of the past. The fear that struck America in 2001 began a
series of other events which finally drove us into an economic downturn
of 2008/2009. As the economic market began its fall shortly after 2000
and radically after 2001 ... we can thank the government in its attempt
to rescue the economy starting with the intervention, small stimulus
checks, Greenspan easing interets policies and Fredy & Fannie
relaxed housing policies. All of this in the name of keeping the market
stable and steadily growing. Though creative financial instruments were
not uncommon for homeowners from Boston, NYC, LA, etc... these
instruments started showing up everywhere across America, and in many
cases the standard 80/20 just disappeared (or at least appear to be the
least choosen instument). All of this in the sake of ensuring stability
in our country and way of life. Ok let me tell you something those
loans that took place in 2002 were up for resets in 2005 and others not
until 2007 (5/1 ARMS) and 2009 (7/1 ARMS). ... and this is just the
beginning, what about those homeonwers that bought or refinanced a home
between 2003-2007? - Yes a total of 5 years of this went on. It will be
another 5 to 7 years to see these reset, in other words don't expect to
be out of the woods until 2011-2014. Which means, if getting a morgage
continues to be difficult, house vaues continue to drop, then maybe the
option to trade your home will continue to be an option until 2014.