Wednesday, February 04, 2009

SAY WHAT?

I just read a piece that stated "If you, the citizen, take out a loan from the government bank and the money inflates, there is a little clause that allows the government bank to adjust up your payment amount to meet inflation."

In other words, if inflation hits 10%, your mortgage payment will be "adjusted" up 10%. A $1,000/month mortgage payment becomes a $1,100/month payment.

If inflation explodes - as predicted - to say 100%, a $1,000/month payment becomes a $2,000/month payment.

Everybody today - in the United States - that has a mortgage with a government-bailed bank, will lose their homes, not just the Clinton era ARMed - but actually ineligible - home buyers that caused all this present-day turmoil.

Can this be really true?

If true, there is no doubt that this - if triggered - could signal the start of a revolution.

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