Foot in mouth disease is something that all of us suffer from at some point in our lives. From the mortgage front, John Devaney, who runs United Capital Markets, a hedge fund that made ungodly amounts of money from trading subprime mortgages is now having a little finanical difficulty as a result of the subprime fallout.
Poor old Mr. Devaney has to sell his $23 million dollar yacht and put his $16 million dollar ski chalet in Aspen up for sale. He may even have to sell his plane and fly Southwest too.
According to CNNMoney, Mr. Devaney is quoted as saying about Option ARMs:
"The consumer has to be an idiot to take on those loans," he says. "But it has been one of our best-performing investments."
Looks like Mr. Delaney may need to apply for sub-prime cash-out refi to consolidate some credit cards and other debts if things don't turn around. Homeowners getting Options ARMs may be for idiots, but it takes an even bigger one to invest hundreds of millions of dollars in them.
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