Reply #16: I disagree, got cautious when Greenspan recommended ARM

[Born Free]

At a time when mortgage rates were low, Greenspan started recommending ARM. It's a sign they are desperate to get people to refinance, which many times pumps money into the economy because people tend to take out any equity built up in their homes. They do this knowing the people will be in terrible shape when the ARM goes up - as it will. These guys are still pushing refinancing to the maximum value of the mortgage, hoping the extra money will keep this anemic economy from stalling completely. However, there is a point where people have maxed out the financing of everything they own, and any drop in income will drive them under. This problem is NOT going away soon, Kerry will be faced with it when he takes office.