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

To: ChanceIs who wrote (247607)	5/10/2010 5:46:08 PM
From: pstuartb	Respond to of 306849

Meredith says: "If you look at nonperforming assets - that's loans that haven't paid over 120 days - the size of that is 1.5 times all of the chargeoffs that banks have incurred since 2005." In my business, if we were to let our over-120 ARs build up like that and our bank found out about it, they'd probably yank our credit line, or at least tell us to write them down to a realistic level. "I think you see a huge leg down in asset prices when you see the supply reach the market. So no, it's not factored into valuations. No, it's not factored into bank guidance. And yes, I think it's going to be a big problem for the banks."" That Whitney Tilson slide show posted earlier today said the same thing. Thank goodness for the Blessed St. Meredith.