Many of the people who purchased with ARMs or sub-primes but could have probably afforded a 30 year fixed were unable to refinance without paying PMi insurnce once the rate expired or reset, due to the loss of equity. PMI on a 400k house is probably close to an extra $400 a month. That's a lot of cash when gas is $4 a gallon and all your credit card rates are 30%.

It was an across the board assult on the a American people, a true act of terrorism. And it was done and continues to be done to us by our government on behalf of  Goldman Sachs, JP Morgan, Citi and BOA.

Note: The bankruptcy rule changes only applied to people, not corps. It would have been very easy for the OTS (office of thrift supervision) to shut down AIG's thirft or bankrupt it without killing the insurance company, as Cenk suggested.

by sisco66 on 02/10/2010 10:50:31 PM EST

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