Times are tough all over

[classicman]

If done properly and house bought within ones means with either a fixed or adjustable rate mortgage was purchased... Where is the issue?
The abuse comes into play when one is sold more house than one can afford and convinced that one can by utilizing an ARM.

[tw]

Originally Posted by classicman

Whats wrong with a 5 yr arm if you are planning to move in less than that amount of time. I realize there is some risk inherent in that, but that is what they were essentially designed for ...no?

ARMs were designed to give you a house that you otherwise had no business owning. What made possible those 4000+ square foot houses with three car garages? A more productive America? Of course not. Variable rate mortgages, NINJA, and the ponzi scheme found in Enron style accounting.

Let's see. All those homeowners, expecting to be there only five years, suddenly got stuck with what? Suddenly they can't move? Economics takes revenge many years later on an economy that plays such money games.