Thursday, April 17, 2008

Carpe Diem on CNBC

Thanks to Larry Kudlow for mentioning Carpe Diem last night on CNBC, he featured the graph above from this CD post on mortgage resets (graph courtesy of Dennis Gartman).


At 4/17/2008 3:38 PM, Blogger bobble said...

one additional comment on the reset problem. tho resets are still a looming problem for Alt-A, the bigger problem now is price declines. people who can afford to make the payments are walking away and defaulting on their loan when the home value dips below the mortgage balance.

from "There are almost $8 trillion in prime mortgages. Until fairly recently most analysts thought that this class of mortgage loans would not be prone to delinquencies and defaults. But half of the GSE foreclosures so far in this cycle involve prime mortgages.... Fed Governor Janet L. Yellen noted that in this cycle mortgage defaults appear to be a function more of house price declines than anything else... "


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