american housing, page-12

I don't agree that option Arm and Alt A wont be a bigger problem than the Subprime.

From the video I posted Subprime was a trillion but these two amount to 1.7 trillion and these mortgages are already defaulting before the reset.

And the interviewed annalist is looking for a 50-70% default rate. If that happens it's lookout below. Banks in America have slowed their foreclosure rates because they can't afford to recognize the losses. These toxic assets are on banks balance sheets and are marked to fantasy not marked to market.

Then we get to the HELOCS. My information is these are zeros.

The major problem IMO for 2010 is all the Zombie banks that are basically insolvent.

It's going to be an interesting 12 months