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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (93973)	11/6/2007 1:37:42 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

re: The previous chart that everyone looks at includes all resets. Not meaning to cast aspersions or question your statement but how can they do that when the adjustment schedules after the resets vary with every type of loan? It seems like it would be unfeasible and I really don't understand how they could do it. After seeing the new chart and thinking about it for awhile I strongly agree with you that the option ARMs are going to be a mess. It is going to make the current subprime problems look like the good old days when the resets occur and will be in my mind whenever I make an investment decision for the next 3-4 years. It's going to be real ugly as I can envision 95%+ of the loans defaulting, most with major losses. 25%-50% of each loan's value could easily end up being written off as an instant loss. edit: Actually set it as the desktop background on my server just so it would always be handy. This chart is too valuable to misplace. EDIT: WHOA NELLIE! I just noticed the legend on the right hand side of the new chart. Ivy had pegged reset value of the remainder of this year in the 45-50 billion range, while the new chart pegs it in the 20-30 billion range. The new chart is a whole lot lower in their damage estimates than Ivy was!