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Years ago, as the real estate bubble was expanding, we were all introduced to the “subprime mortgage.” It was a mortgage issued to someone of less than prime credit rating and, like the prime mortgages, it allowed for an adjustable interest rate beginning with extremely low teaser rates, interest only loans, and other exotic financing arrangements. Consider the following chart regarding mortgage interest resets and notice the amount of subprime mortgage resets in 2008.

Once the housing bubble burst, we were told for months that the contagion from the subprime fallout …

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