4/13    You know things are bad when Mr. Greenspan start acting like
        a mortgage saleman asking americans to go for ARM intead
        of FIXED.
        \_ Care to elaborate for us non-economists?
           \_ This guy's referring to an article that was motd'd recently.
              In that article, they point out
              that Greenspan knows that the whole recovery is being fueled
              by consumer debt spending, which is fueled by consumers taking
              equity out of their house.  But most everyone's refinanced
              already to fixed--and so the recovery is jeapordized.  If
              Greenspan can get the consumer to refinance again--to an ARM,
              they'll have more money to spend.  And they will--Americans
              being the dumb "must have what I want NOW" fools that we are.
              \_ So if you switched to an ARM, you'd have lower mortgage
                 payments in the short term, so more spending money, but then
                 you get screwed in a year or two when interest rates go back
                 up.  Is that it?
                 \_ Yes.
                 \_ The main thing is why greenspan feels the need to get
                    involve with this, which is really weird.  shows
                    that he is not confident in the recovery at all.
                    \_ Fed Chairman's job is not to feel confident about
                       anything or to project his own confidence to the
                       country.  His job is to try to keep the economy in
                       a good shape.
                       \_ yea, but encouraging people to go for another
                          refinance from fixed to arm makes him look
                          desperate, and make things look dire.  Is
                          the economy really that bad?