A Quickie Reminder

As the dollar plunges in value, as bonds plunge in value, and as other countries like Saudi Arabia consider moving away from the dollar as a reserve currency, don't forget this little chart:


This is the chart of the upcoming adjustable rate mortgage resets. Mortgage interest rates (thus far) have reacted to the Benanke helicopter drop of dollars with a yawn. In fact, mortgage rates actually climbed after the announcement as the bond market is pricing in greater inflation on longer maturity bonds. Unless something changes (a surprise rate increase? .... lol), those adjustable rate mortgage holders are still in for a world of hurt.

If Bernanke and company are freaking out now, just wait for spring. Note on the chart that we are Sept. of 07. Take a look at the resets between now and summer of next year.