The market never does a dance to help the little guy(mannfm11)

What if they cut the LIBOR to 1%	mannfm11	NEW 12/14/2007 12:33:13 AM
Mortgage news article about subprime adjustables Inthis article, they cover the timebomb of 2/28 ARM's. One of theassumptions is that the interest rate would always go up on adjustment.It appears these loans carried an introductory rate of 7.5% and trackedthe 6 month LIBOR plus 5.5%. Thus, it appears we are about to doanother 2001-2003 interest rate plunge to the 1% range and they areabout to freeze the rates on these things at 7.5%. A 2% LIBOR rategives a 7.5% fully indexed rate. The market never does a danceto help the little guy. The market always does a dance to bail out therich bankers. Screw the world if they were stupid enough to buy thesethings, don't screw the bankers. Never screw the bankers no matter howstupid their acts are or you get screwed yourself. In fact, bail outthe bankers and while bailing them out, make the people pay rather thangive them an interest rate cut. I have been wondering whatthese loans adjusted to. The problem isn't the adjustment, but the factthe loans should have never been made in the first place. Not everyonethat bought on these things bought in a manner where they would beinundated by a rate increase. The whole thing about the adjustmentsbeing the problem just don't wash. The problem is the industryoverloaned the collateral and when you overloan the collateral of anytype, you get too much of it.