Tuesday, June 21, 2011

Misc: ARMs Comeback, Greek TV, and More

by Bill McBride on 6/21/2011 03:35:00 PM

UPDATE: No surprise, from CNBC: Greek PM Wins Crucial Vote, But Outlook Remains Dire

• From Tara Siegel Bernard: Borrowers Wade Back Into Adjustable-Rate Mortgages. CR Note: We have to remember that not all ARMs are bad - just like not all "subprime" is bad. During the bubble, many borrowers didn't understand the product and were frequently qualified at an absurdly low teaser rate - if they were qualified at all, with little or no proof of income. As long as people understand the terms, and the underwriting is solid - this probably isn't too bad (although I'm sure there are people who will get burned).

• The Greek confidence vote is scheduled to start at 5 PM ET. Here is the online Greek TV (it is all Greek to me). It is pretty clear that Prime Minister Papandreou will receive a vote of confidence (just more theater - like the debt ceiling charade in the U.S.). So they will receive a few billion more ...

• Here is the Conference of Mayor's report with some local data: U.S. Metro Economies Report: 2011 Release

• And from the LA Times: Controller says he won’t pay legislators

California lawmakers must forfeit their pay as of mid-June because the budget they passed last week -- which Gov. Jerry Brown vetoed less than 24 hours later -– was not balanced, the state controller said Tuesday.
Voters approved a law last fall that empowered legislators to pass a budget with a simple majority vote but also threatened to strip them of pay for every day the blueprint is late. The measure makes no mention of approving a balanced budget, but other laws on the books dictate that state budgets be balanced.
FOMC Meeting Preview
May Existing Home Sales: 4.81 million SAAR, 9.3 months of supply
Existing Home Sales: Comments and NSA Graph
Existing Home Sales graphs