Friday, June 17, 2005

Bubble trouble

...This year, only about $80 billion, or 1 percent, of mortgage debt will switch to an adjustable rate based largely on prevailing interest rates, according to an analysis by Deutsche Bank in New York. Next year, some $300 billion of mortgage debt will be similarly adjusted.

But in 2007, the portion will soar, with $1 trillion of the nation's mortgage debt - or about 12 percent of it - switching to adjustable payments, according to the analysis....

From the NYT via Majikthis

Brace yourself for what happens when interest rates go up at the same time energy costs go through the roof.

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