Comments on: Financial Bankruptcy, the US Dollar, and the Real Economy http://dissidentvoice.org/2007/08/financial-bankruptcy-the-us-dollar-and-the-real-economy/ a radical newsletter in the struggle for peace and social justice Sun, 22 Nov 2009 21:26:56 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Dissident Voice : Anatomy of the American Financial Crisis: How It is Turning into a Worldwide Crisis http://dissidentvoice.org/2007/08/financial-bankruptcy-the-us-dollar-and-the-real-economy/#comment-29676 Dissident Voice : Anatomy of the American Financial Crisis: How It is Turning into a Worldwide Crisis Mon, 13 Oct 2008 14:05:45 +0000 http://www.dissidentvoice.org/2007/08/financial-bankruptcy-the-us-dollar-and-the-real-economy/#comment-29676 [...] we wrote right at the very beginning, on August 24, 2007, the financial crisis in the U.S. is not only a classic “liquidity [...] [...] we wrote right at the very beginning, on August 24, 2007, the financial crisis in the U.S. is not only a classic “liquidity [...]

]]> By: Rohan Gaiswinkler http://dissidentvoice.org/2007/08/financial-bankruptcy-the-us-dollar-and-the-real-economy/#comment-4390 Rohan Gaiswinkler Thu, 23 Aug 2007 03:30:44 +0000 http://www.dissidentvoice.org/2007/08/financial-bankruptcy-the-us-dollar-and-the-real-economy/#comment-4390 Answering Jim's question: ARM's are a mortgage product for less credit worthy borrowers in which the rate resets are prearranged. For banks and related lenders, a voluntary abandonment of resetting would represent giving away money for free (something they will not do for ordinary customers regardless of the wider financial situation). Answering Jim’s question:

ARM’s are a mortgage product for less credit worthy borrowers in which the rate resets are prearranged. For banks and related lenders, a voluntary abandonment of resetting would represent giving away money for free (something they will not do for ordinary customers regardless of the wider financial situation).

]]> By: Jim Cronin http://dissidentvoice.org/2007/08/financial-bankruptcy-the-us-dollar-and-the-real-economy/#comment-4369 Jim Cronin Wed, 22 Aug 2007 16:43:46 +0000 http://www.dissidentvoice.org/2007/08/financial-bankruptcy-the-us-dollar-and-the-real-economy/#comment-4369 I am admittedly naive economically. Perhaps the following question can nevertheless be answered: If resetting the ARM interest rate later in the year will inflate (pun intended) the current crisis, beginning with so many people defaulting on their loans and losing their homes, why must the interest rates be reset? In other words, why don't the very financial institutions who will be affected by a growing crisis voluntarily keep ARM rates low to avoid further bursting of the bubble? I am admittedly naive economically. Perhaps the following question can nevertheless be answered:

If resetting the ARM interest rate later in the year will inflate (pun intended) the current crisis, beginning with so many people defaulting on their loans and losing their homes, why must the interest rates be reset? In other words, why don’t the very financial institutions who will be affected by a growing crisis voluntarily keep ARM rates low to avoid further bursting of the bubble?

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