This week’s Hussman article was okay, but not as stunning as his previous winners. Nonetheless, here is an interesting thought:
“…it is beyond reason to believe that homeowners would voluntarily modify Option-ARMs before the reset date, when those mortgages currently allow them to arbitrarily choose their payments or pay interest only until that date arrives. According to Fitch, nearly 90% of of Option-ARMs have yet to reset, and of those, about 94% of them have used the minimum monthly payments to allow the loans to “negatively amortize.””
http://www.hussmanfunds.com/wmc/wmc091026.htm
