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  1. #41
    Retired 10,000+ Posts slimslob's Avatar
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    Re: Are you a poor person that voted for Biden?

    The mortgage bubble cause can be traced back to the Alternative Mortgage Transaction Parity Act of 1982 which allowed non-federally chartered housing creditors to write adjustable-rate mortgages. Approximately 90% of subprime mortgages issued in 2006 were adjustable-rate mortgages.

    Then came the Housing and Community Development Act of 1992 which is what encouraged the use of subprime mortgages. Subprime mortgages allowed those who would normally not have had enough income to qualify to obtain a mortgage.

    Most subprime mortgages were also adjustable rate mortgages(ARMs). That brought the monthly payment down to where the buyer could afford it. When those mortgages began to ARM up, the buyers would just refinance and since the housing prices had gone up they would take out as much equity as they were allowed and still be able to make the monthly payments. Then circa 2006-2008 base mortgage rates also started to rise and in many cities faster than the housing prices. Borrowers could no longer refinance to get lower payments as the starting payment on a new loan was often more than ARMed up payment. That is when the bubble burst.

    It could have been prevented simply if those Acts had merely specified that ARMs and subprime borrowers could not take out equity when they refinanced.

  2. #42
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    Are you a poor person that voted for Biden?

    copiertec's Avatar
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    Re: Are you a poor person that voted for Biden?

    I find it interesting that the Fed decided to discontinue the M1 and M2 money supply data as a means of a litmus test for the economy. I find it very alarming, as they are off the charts right now and if you have studied economics you will understand that there is a direct relation to the growth of the money supply and inflation/hyperinflation, look at 2020 and beyond, it's going to get interesting here in the USA. Here are the current charts that the Fed decided to discontinue as a measure of the economy. My question is, why did the Fed discontinue these charts?? It's time to buckle up, people.

    M1 Money Stock (DISCONTINUED) (M1) | FRED | St. Louis Fed

    M2 Money Stock (DISCONTINUED) (M2) | FRED | St. Louis Fed

  3. #43
    Retired 10,000+ Posts slimslob's Avatar
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    Re: Are you a poor person that voted for Biden?

    Quote Originally Posted by copiertec View Post
    I find it interesting that the Fed decided to discontinue the M1 and M2 money supply data as a means of a litmus test for the economy. I find it very alarming, as they are off the charts right now and if you have studied economics you will understand that there is a direct relation to the growth of the money supply and inflation/hyperinflation, look at 2020 and beyond, it's going to get interesting here in the USA. Here are the current charts that the Fed decided to discontinue as a measure of the economy. My question is, why did the Fed discontinue these charts?? It's time to buckle up, people.

    M1 Money Stock (DISCONTINUED) (M1) | FRED | St. Louis Fed

    M2 Money Stock (DISCONTINUED) (M2) | FRED | St. Louis Fed
    I noticed that the M1 and M2, reported weekly, have been replaced by the M1SL and M2SL which will only be reported monthly. The questions now become "Why is the FED only wanting to report on a monthly basis? What's next only quarterly?"

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