Half A Trillion Reasons Why
We have nattered before about the ARM resets due over the next three years. As reported in the WSJ, Bank of America estimates $500 Billion in resets for 2008.
The best part is...
"More than half of the subprime delinquencies and foreclosures this year involved loans that hadn't yet reset,
and thus were due to factors such as weak underwriting and falling home prices, according to Rod Dubitsky, an analyst with Credit Suisse."
Better yet...
"The projected supply of foreclosed homes is equal to about 45% of existing home sales
and could add four months to the supply of existing homes, says Dale Westhoff, a senior managing director at Bear Stearns.
This is a "fundamental shift" in the housing supply, says Mr. Westhoff, who believes that home prices will drop further as lenders "mark to market" repossessed homes."
The Nattering One muses... Mr. Westhoff is spot on. What will prices do with a four month increase in inventory? Answer...
What does an egg dropped from the top of the Empire State Building do when it hits the ground? It liquidates as it goes SPLAT!!!
The best part is...
"More than half of the subprime delinquencies and foreclosures this year involved loans that hadn't yet reset,
and thus were due to factors such as weak underwriting and falling home prices, according to Rod Dubitsky, an analyst with Credit Suisse."
Better yet...
"The projected supply of foreclosed homes is equal to about 45% of existing home sales
and could add four months to the supply of existing homes, says Dale Westhoff, a senior managing director at Bear Stearns.
This is a "fundamental shift" in the housing supply, says Mr. Westhoff, who believes that home prices will drop further as lenders "mark to market" repossessed homes."
The Nattering One muses... Mr. Westhoff is spot on. What will prices do with a four month increase in inventory? Answer...
What does an egg dropped from the top of the Empire State Building do when it hits the ground? It liquidates as it goes SPLAT!!!
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