Jumbo ARMS (mortgage, business, sell, investments)

[Wild Style]

Jumbo ARMS are the real meat in this three course meal we call the housing recession.

Great read on the state of these loans

link

Might have to register with NYT, not sure.

[Catsofthebase3]

During the boom, people could be easily swayed by the promises of stable arm's, nice neighborhoods/school systems/low crime/etc, and a slew of other things that easily blinded one to the reality that they simply couldn't afford the mortgage without ideal circumstances.

The 2nd trick was bundling up those horrible deals with some good debt and selling them off as securities. Most folks don't do enough reading on those investments (major firms included), and they wind up picking up a gold plated piece of poo.