Signs that yes, we are actually in a credit bubble!

[TjamesX]

Saw this and couldn't help posting it...

Oh the irony of this article - headline "How Analysts Missed The Meltdown"

Then you look to the right - mortgage rates fall again!

So apparantly I can borrow 510,000 (in the US) with payments of only 1498 a month... so assuming I/O loan that is equivalent to a 3.5% rate. The fed funds rate is 5.25%, 30 year govt debt is about 4.8%, add on a couple of points for risk and you would expect the REAL loan would be about 6.5-7.5%.

The teaser rate is half what it will reset to...

Ahhhhh Neg Am Weapons of mass financial destruction

 

[theasxgorilla]

I saw something similarly ridiculous here...it was promoted in some kind of association with Steve McKnight (mr Positive Cashflow property)...some mortgage mob promising to make your metro-area property cashflow positive and help you cover all those incidental expenses that seem to keep popping up, like interest and insurance and maintenance etc. The way they did it was by amortising your interest onto the loan in exchange for some of the capital gains on the house. No doubt they protected their position by having you sign over the right to said gains whether they actually occured or not. Eugenics suggests we need offerings like this every now and then to kill off the idiots and evolve the specifies. :

 

[wayneL]

Eugenics suggests we need offerings like this every now and then to kill off the idiots and evolve the specifies. :

Ahaha!

I'm quite certain you've hit the nail on the head there G.