More “ARM Twisting” ahead: It has been widely reported that nearly one trillion dollars worth of adjustable rate mortgages (ARMs) will reset to higher interest rates in the next 18 months. That is nearly 20% of all mortgage loans outstanding. Are the majority of sub-prime borrowers ready for the higher monthly payments? Probably not. So we can expect to see a lot more delinquencies and foreclosures in the next two years. As previously mentioned in SurvivalBlog, a small portion of rural foreclosures may represent a retreat buying opportunity. Monitor the market closely, either through a cooperative agent in your selected retreat area, and/or through Foreclosure.com.
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A recent issue of The Sovereign Society A-Letter noted that the US Dollar Index recently fell “below the 78.19-level – the level it’s managed to hover above since 1992.” When I last checked The USD Index had bounced back up a bit to 78.33. Watch this key indicator closely. It is a barometer for the health of the dollar, and inevitably for our entire economy. Presently, we are standing on a precipice. The bottom is long way down.
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A reader is Sweden mentioned that there is a new Swedish language blog on survivalism, called Systemkollaps. Välkommen!
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Mark A. saw this interesting site on making small batches of steel from iron ore. Mark’s comment: “I hope things don’t get so bad that we’ve got to revert to this technology.”