– “The problem now is that the insanity didn’t end with the sub-primes…there were other exotic loans: alt-A’s and option ARMs.”
– “The teaser rates will go up. A mortgage payment of $800 a month could easily jump to $1500.”
– “70% of these option ARMs will default.”
– “We’re looking at about 3 to 4 to 5 years.”
(h/t Chicken Smith)
