Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • 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
  • Dick Young’s Safe America

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)
  • Work to Make Money/Invest to Save Money - April 19, 2021
  • The Vanguard Wellesley Way - April 16, 2021
  • Your Port Against a Storm. - April 13, 2021

Search Young Research

Most Popular

  • The Three Bubbles Threatening Your Portfolio Today
  • The Vanguard Wellesley Way
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • There Are Plenty of Ways to Invest in This Market
  • When Stocks Drop by 33.9%, 49.1%, or Even 56.8%
  • Turkey Bans Bitcoin
  • TIPS Not the Best Inflation Hedge Today
  • The Highest Yielding Dow Stocks
  • Chinese Taking Aim at Tesla
  • 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

  • “Suicide by Cop” – Spinning Out of Control
  • FBI Warning: Multiple State Scammers Are Bilking Millions
  • OUTRAGE: LeBron James Threatens Police Officer
  • VIDEO: Lara Trump and Herschel Walker on the Future of the GOP
  • “Hillbilly Elegy” Author J.D. Vance May Run for Senate in Ohio
  • Get Out Your Guns
  • The County Sheriff: America’s Last Hope
  • A Look at the Future of Main Street America
  • U.S. Survival AR-7
  • My Grandkids All Own Guns

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

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

Copyright © 2021 | 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.