Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

A Nightmare Schedule

November 9, 2010 By Dick Young

December 4, 2009
I have in front of me a most depressing chart. It shows the value of adjustable-rate mortgage (ARM) resets. The chart runs from 2006 to 2012 and has two peaks-almost like the back of a camel. The first peak was in early 2008. The second peak is in 2011. Guess where we are today in the ARM-reset schedule? That’s right, smack in the middle of the two peaks. The low point for ARM resets was 2009. Starting in the spring of next year, ARM resets will ramp up. The first batch of resets in 2008, which of course triggered the credit crisis, were dominated by subprime loans. The upcoming batch of resets is dominated by option ARMs. These mortgages were underwritten at the peak of the real-estate bubble with low teaser rates. The folk who bought houses with the mortgages are likely seriously underwater. There is little doubt in my mind that when these mortgages start to reset, you are going to see another wave of foreclosures and a downdraft in economic growth. Look out.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • New York Real Estate Sales Plunge
  • What’s Supporting Real Estate Prices?
  • The Rise of Robo-Real Estate?
  • Author
  • Recent Posts
Dick Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Dick Young (see all)
  • PRICES SOAR: Diesel Shortage Could Cripple America’s Economy - May 13, 2022
  • Young’s Retirement Compounders Clearly Dominate! - April 26, 2022
  • The Magic of Compound Interest - April 5, 2022

Search Young Research

Most Popular

  • MARKET CHAOS: This May Take Time, Here’s How to Prepare
  • Don’t Throw Your Bond Portfolio Out the Window
  • PRICES SOAR: Diesel Shortage Could Cripple America's Economy
  • Your Survival Guy: “Sell in May, Buy After Labor Day?”
  • You Can Do Better than Mutual Funds and ETFs with Your Cash
  • All-Powerful Money Managers Voting YOUR Money Targeted by Senate GOP
  • Institutional Investors Fall in Love with Oil, Again
  • Will Market Prices Soon Be Meaningful Again?
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • The Power of a Compound Interest Table

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Consequences of Biden Killing the Keystone Pipeline
  • Are You Suffering from One of These Nutrient Deficiencies?
  • PRIMARIES: Trump Endorsed Candidates’ HUGE Night
  • “We Cannot Save Ukraine by Dooming the US Economy.”
  • What’s Ahead for America During Biden’s Last Years
  • BE VIGILANT: The Rats Are Scurrying in These Rough Markets
  • COERCION BY APOCALYPSE: The Great Reset Wants to Transform Society with Disaster
  • More Returnees than Refugees at Ukrainian Border
  • DIGITAL DOLLAR DOOMSDAY: The Wall Street Journal Is NOT Going to Tell You This
  • Musk to Break Silicon Valley’s Progressive Conformity?

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.