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BEAR STEARNS PROTEST WEDNESDAY: THE PRESS RELEASE

26 March 2008, 19:42, by KM

The entire financial system is at risk because too many people took out ARMs and now they can’t make their mortgage payments (that really is what it comes down to, isn’t it?). Yes, Bear and others were dumb to bet that they WOULD be able to make their payments, and now those companies are toast, with or without the bailout.

I’m a prospective homeowner (hopefully soon), but if your terms were to be accepted, I’d never be able to get a home loan. The banks would all either be too broke or too scared to issue me one, no matter how qualified I am.

Those interest rates you want to roll back to were TEASER RATES. As in, they were TEASING YOU. We all knew this, and we all knew this was going to happen. The web is full of articles from the past five years predicting this. See this CNN article from 2006 if you don’t believe me, or read this gem from 2004: "If you have to resort to interest-only loans to afford the monthly payments when rates for fully-amortizing hybrid ARMs are this low, you can’t afford the house."

This was all there for everyone to read four years ago.