How long does it take to go from “Exotic” assets to “Toxic” assets?

The answer is simple: from one Fed Chairman’s term to the next.  It was not that long ago when the Pay Option ARM, also known as Negative Amortization Loans, where offered attractively by all major lenders such as Washington Mutual, Countrywide, Downey Savings, and World Savings (formerly Bank of The West).  Wall Street’s hunger for these … [Read more...]

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