Making sense of the mortgage system collapse

[Black Landlord]

[quote Sam3]Same with the ARM. Maybe I'm weird, but I would think it doesn't take a rocket scientist to figure out that if something is at 5% (as the rates were then), there isn't much room for them to go lower. If something doesn't go lower, it will go up. And anybody who grew up int the 70's would know what interest rates were like then - 16-19%. ARM's weren't offered in such a public fashion back then, now were they?
There were and still are solid reasons to choose an ARM.