Comments on: Rep. Waxman Demands Details on Bear Stearns Collateral http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/ The FreedomWorks blog dedicated to lower taxes and more freedom. Sat, 11 Oct 2008 01:12:09 +0000 http://wordpress.org/?v=2.6.1 By: Sickle http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79916 Sickle Thu, 10 Apr 2008 17:10:13 +0000 http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79916 The facts! They burn! The facts! They burn!

]]> By: Mister Guy http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79878 Mister Guy Thu, 10 Apr 2008 01:24:48 +0000 http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79878 Exactly... Exactly…

]]> By: Sickle http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79867 Sickle Wed, 09 Apr 2008 21:51:56 +0000 http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79867 ACtually, Greenspan himself said that ARMs were a good thing and thought they could help people who could otherwise not afford it to buy homes. He himself has said he was wrong about them, and has never disputed praising ARMs. I suppose we could argue about whether he "pushed" them or not, but he did sing their praises at a critical time. Having the Fed Chair tell America that ARMs could help them and were good ideas certainly has an impact, though, wouldn't you say? ACtually, Greenspan himself said that ARMs were a good thing and thought they could help people who could otherwise not afford it to buy homes. He himself has said he was wrong about them, and has never disputed praising ARMs. I suppose we could argue about whether he “pushed” them or not, but he did sing their praises at a critical time. Having the Fed Chair tell America that ARMs could help them and were good ideas certainly has an impact, though, wouldn’t you say?

]]> By: Chris Kinnan http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79750 Chris Kinnan Tue, 08 Apr 2008 12:54:03 +0000 http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79750 Greenspan never "pushed" ARMs but, in hindsight, some argue that he keep interest rates too low too long and that encouraged people to take ARMs (which carry interest rate risk but look less risky in a low interest rate environment). Either way, it is important to note that the current problem is not really an ARM problem, as interest rates remain low....the borrowers in default at the moment either understated their income (common with no-doc loans), lost their jobs (too common in the midwest), were cheated by their lenders or brokers, or were betting aggressively that prices would rise before their ARMs reset. Greenspan never “pushed” ARMs but, in hindsight, some argue that he keep interest rates too low too long and that encouraged people to take ARMs (which carry interest rate risk but look less risky in a low interest rate environment).

Either way, it is important to note that the current problem is not really an ARM problem, as interest rates remain low….the borrowers in default at the moment either understated their income (common with no-doc loans), lost their jobs (too common in the midwest), were cheated by their lenders or brokers, or were betting aggressively that prices would rise before their ARMs reset.

]]> By: Mister Guy http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79736 Mister Guy Tue, 08 Apr 2008 06:47:29 +0000 http://www.freedomtalks.org/2008/04/07/rep-waxman-demands-details-on-bear-stearns-collateral/#comment-79736 How about the mess of the housing industry that the former Fed chairman Greenspan made by pushing ARMs so hard in the first place? The Fed has a lot to answer for sure on the current housing crisis. How about the mess of the housing industry that the former Fed chairman Greenspan made by pushing ARMs so hard in the first place? The Fed has a lot to answer for sure on the current housing crisis.

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