Letters to the Editor
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ARMS not the problem
ARMs aren't the problem, even though greedy bankers are part of the problem I know plenty of people who smartly chose ARMs over fixed rates, and saved alot of money doing so.
The problem is that too many lenders qualified borrowers who couldn't afford to borrow as much as they did. The low interest rates on the ARMS allowed the mortgage peddlers to justify the loans to mortgage underwriters who were asleep at the wheel.
Greenspan is right to sing the praises of different mortgage products as they can allow consumers to save money. We shouldn't be criticizing the products, but the mortgage lenders - even as they are now burned by their own greed to lend ever more money.