Philosophers have debated this for centuries. Mankind has been trying to hunt for its own roots, to search for the meaning of Life? Why were we born? Why are we here? And then there is the other big question: how did we get here?
Sky-high default rates om mortgages are not confined to subprime-related borrowing, and the US economy has yet to feel the full force of the housing crisis, according to a report in the The Wall Street Journal.
According to the WSJ, there is a “rapid rise” in default rates on ARM mortgages, mortgages that give borrowers with good credit several different monthly-payment options, reports. And a report by Citigroup says losses on ARMs may be “close to subprime” in some cases.
At their two-day meeting that starts today, Tuesday, U.S. Federal Reserve policymakers will have to grapple with a moral choice that is well beyond the pay grade of central bankers - choosing between the financial stability of U.S. homeowners and world hunger.