Apparently there is likely to be a new wave of mortgage defaults looming. Option / ARM loans are soon to reset to higher interest repayments and about 70% default rates are suggested. There is about $1.6 trillion in Option / ARM loans to add to the $1 trillion of Subprime loans

http://www.ritholtz.com/blog/2008/12/the-mortgage-meltdown/

The Option ARM reset threat is what's behind the Federal Reserve Bank cutting rates to zero today. They're hoping to keep the default rate down by making it "more possible" to refinance at a low interest rate. I don't know what this will do to incentivize the folks whose equity has been wiped out by falling real estate prices (mainly in California, Nevada, and Florida but metastasizing to a town near you) to stay in their mortgages. Even at 2%, a mortgage for $500K on a house worth $200K is going to be a tough sell to John Q. Public.

If you wonder why I like to spend my nights on drugs and whores, now you know. This is what I worry about all day.

Unemployment rates aren't high enough to make a 70% default rate plausible. You can't just walk off from a mortgage because you'd rather buy a big-screen TV. The current value of a house has no effect on whether you afford the mortgage or not, just whether you want a mulligan.

I agree the zero interest rates are about ARMs. But at some point someone has to be prodded into once again making loans to qualified buyers. The recovery won't start until there are buyers again.

I have wood after watching that 60 minutes clip.

My dream is I will find a some world class beauty former Miami Real Estate Orgy Hostess who is desperate to NOT have to get a real job, desperate to be able to maintain a MINIMUM standard of high class living, who will lower herself to being the Sex Slave/Mistress to a gimp like me for some ridiculoulsy "low" amount of money like 15k a month.

That's right, I've done the math while whores do the meth. I figure 15K/month is a very doable and reasonable number for both sides in this equation. She gets to sleep in, not work, go tanning, get her nails done, get a massage, enjoy healthy delicious quisine (from restaurants AND me), and she gets a reasonable amount of shoppingin each month (probably NOT what she is used to NOW or has been, but wayyyy better than nothing and wayyyyyyyyyy better than what others will face in the coming months.)

And all she has to do is allow me to jerk off in her mouth twice a day whenever I command it, and laugh at my jokes and get intoxicated with me a couple nights a month. Which most whores want to do anyway once they meet me....except NOW I am looking at having me a truly ELITE, "10" class model/whore at my beck and splooge.

Yes, within each economic calamity, therein lies hidden yet fanatastic opportunity and benefit for those with the means and will and insight to exploit it.

A whore who resembles Molly Sims form that awful TV show "Vegas" would be a nice face to splooge into each day.


In reality, Burg is disgusted by the abject stupidity and GREED that took hold and put us in this position, the greedy amoral investement icons and bankers with flabby arms and yellow teeth, who faciliatated this, along with the average DUMB American late 20s/early 30s couple who got themselves jacked up in these deals since the year 2000.....FUCK ALL OF YOU idiots, you got what you deserve. Now I am having fun at YOUR expense, with access to a whole new level of BEAUTY in whores I NEVER would have allowed myself to pay for before...

Truth is, I still would be happier with sluts./whores who might be a step or three down from uber hottness, sluts/whore who look like your average porn chick in terms of hottness (and with the correlating sluttiness, flithiness factors....)... But when formerly high priced shit is "ON SALE" you gotta take advantage....Gia would be disappointed if I didnt upgrade my whores shopping while I have the chance.