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 Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (91864)	10/11/2007 9:28:31 PM
From: alanrs	Read Replies (2) \| Respond to of 306849

That's what I'm keeping in mind. With leverage numbers being bandied about of between 20 and 70 times, it takes a lot less of a default rate to wipe everyone out. Plus there is the snowball effect. As more people walk away it gets easier for the next group to do the same. Just as the perception of a slowdown causes people to rein in their spending which precipitates a recession. This has barely started and will not end well. I'm not buying the idea that the various institutions have identified their portion of the problem, taken the write offs and can now move on. ARS