The war and the deficit are leaving no room for fiscal stimulus.
Are you suggesting that running an additional one-time deficit of 1% of GDP is worse than a recession?
Interest rates on new mortgages would skyrocket – perhaps past 8 percent
B.S.
Interest rates on ARMs may well skyrocket. Good riddance. To conforming loans and fixed jumbos, it won’t do a thing.
Now, if Fannie Mae folds because ARM resets push prices down too fast and leave lots of people with negative equity, THAT will wreck the housing market …
