Home › Forums › Housing › Subprime Interest Resets › This article was poorly
This article was poorly written, because it failed to explain how a subprime ARM works.
What happens is that instead of getting 30 year money an ARM uses short term money 12-24 month money so it requires continous rolling resets.
The hazard is bernanke has been forcing short term rates into the sewer. Once those rates rise again, ARM holders will find themselves screwed again.
Bernanke is desperately trying to help wall street out, for now.
