ARM Monster, Real Halloween Scare
OCTOBER 27, 2007
This Illustration was publishing in last Wednesday's Wall Street Journal . the article was " Countrywide's New Scare" . It shows their chairman and CEO Angelo Mozilo cowering under the company covers from the ARM Monster, (loans known as option adjustable -rates mortgages . option ARMs) .Since it's publication, the story has has evolved into a scarier Halloween story each day.
Last night , we spotted Carrie on commercial television. We like watching scary movies around Halloween. I was surprised that there were several Countrywide Investments commercials during the movie.
Of coarse, you hear how bad SUV's are, and you get Hummer ads. You hear about childhood obesity and diabetes, you see the sugar ads on the kid shows.
Now we hear home mortgage advertisements selling minimum payment that covers none of the principle. and their loan balances grow-- a phenomenon known as"negative amortisation." ( obvious quote from the article)
It was a pleasure to draw the ARM Monster.
I used my own hand as a model. If I happen to meet any Drawger members out there, you might hesitate shaking my hand.