Chicago Fed Warns of ‘Time Bomb’ Mortgages
February 4th, 2007Via: Daily Herald:
Officials of the Federal Reserve Bank of Chicago called on state agencies to clamp down on lenders that make high-risk mortgage loans to people who can’t afford them.
In a conference at the bank on Wednesday, Federal Reserve examiner John Taylor said states need to put more resources into examining the lending and marketing practices of mortgage brokers before a rash of delinquencies and foreclosures do severe damage to housing markets. Mortgage brokers are regulated by states, not federal agencies.
“I’m very concerned that there’s a ticking time bomb in (loan) portfolios,†Taylor said.
Nontraditional mortgages, the kind that pop up when you sign into your e-mail, offer the chance to make small monthly payments for a set period of time, but eventually those loans reset, in some cases increasing monthly payments substantially.
Analysts estimate that between $1 trillion and $2 trillion will be owed on these mortgage loans due to resetting in 2007 with an average 25 percent increase in monthly payments, meaning “payment shock,†said Allen Fishbein, Consumer Federation of America director of housing and credit policy.
If Mr. Taylor decided to attend a New Year’s Eve celebration, he’d make it there no earlier than 7:00 a.m., Jan. 1.
Kevin,
For an assessment of the mortgage debacle that’s less a full-on Monet, check out “Subprime Credit Crunch Could Trigger Collapse” at autodogmatic.com
I think They’re attempting to explode all bombs at the exact same time for maximum chaos, although that assertion is faulty in the following sense: why would a group so obsessed with Order set in simultaneous motion so many cross-directional vectors, knowing that even They may not be able to control the directions these vectors take once they begin to intersect?
I’ll answer that question shortly.
“They” are not necessarily interested in “Order” but rather control. Properly managed disorder can increase control.
And disorder incapable of being managed can and will become uncontrollable; I can’t fathom any Dominant Clan–even The Owner Class–being able to manage the simultaneous, chaotic intersection of the very vectors–financial, economic, military, and geopolitical–they use to exert control; there are only so many real world resources, and they can’t all be simultaneously deployed to solve myriad, complex problems associated with newly created, intertwined, interrelated vectors that may disconnect and reconnect at random, unpredictable moments in time and in random, unpredictable ways.
Human behavior is predictable up to a point, but it becomes less so with the progression of time and the interaction of the human or humans, upon which the prognostication is predicated, with new stimuli, in this case, the SEEMINGLY organic generation of a new environment in which the organism is expected to make profit-maximizing decisions; in this new environment, the observed human decision-making capacity will not adhere to models because rational and irrational behavior within the same individual will occur at discreet, unpredictable moments and will combine in unpredictable ways.
p.s. Are you an Agent, Vincent? And answer honestly; if you attempt to lie, I’ll see through it immediately.