Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (61865)	5/24/2006 11:24:16 AM
From: yard_man	Respond to of 110194

it's just like everything else, obviously -- it's not a matter of how many are in trouble now, but how many could be easily within 6-18 months

To: GST who wrote (61865)	5/24/2006 11:25:26 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

It varies by region. A very high percentage in California used toxic ARM's the past two years. In Texas I recall the figure being only 1%. What is most scary is we had record foreclosures in Texas even with low home prices and little use of toxic ARM's. The inability of folks to use equity extraction in bubble markets now that appreciation won't be bailing them out will cause a rash of foreclosures in certain areas of this country the likes of which we might never have seen before in our lifetimes

To: GST who wrote (61865)	5/24/2006 11:41:27 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

There are $10 trillion in mortgages and roughly $2 trillion reset in 2006-2007. The biggest hidden bombshell of all, that few mention, are neg ams that convert to regular amortization (at the indexed rate) when loan balances hit 110% of the initial loan amount. As real rates are now 8% plus on these loans, people paying 3-4% "pretend" rates, will hit this in two years. This shows the timing of when these were taken out. 2004 vintage will start to get pretty ripe before long. idorfman.com