You Can’t Make This Stuff Up

Calculated Risk reported this gem, from the Time Magazine Person of the Year extended interview with Ben Bernanke, which I couldn’t read because I wasn’t drunk from drinking the Kool-Aid:
What’s your interest rate?
That I’m earning?
No, on your house. Do you have a mortgage?
Oh, yes, we refinanced.
Oh, perfect. When?
About 5%. A couple of months ago.
Good time.
Yes.
We had to do it because we had an adjustable rate mortgage and it exploded, so we had to.”
ummm…. silence…cricket… cricket…   Let me recap:
“We had to do it because we had an adjustable rate mortgage and it exploded, so we had to.”
That’s from Time Magazine Person of The Year Ben Bernanke, Chairman of the United States Federal Reserve, who has bought roughly a TRILLION dollars worth of mortgage backed securities to keep mortgage rates artificially low, and has kept short term interest rates at zero in an effort to continue to stimulate the economy and the housing markets.  
WTF is going to happen when these subsidies stop???   To the bomb shelter!!!! The ARMs are exploding!!!
Interesting times indeed…
-KD

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