More Mortgage resets coming? January 17, 2010
Posted by wallstreetbuddha in Uncategorized.Tags: Alt-a, Housing Boom, Housing Crash, option arm, Stock market crash, Subprime
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I really don’t know what to think. Everytime I see this chart a cringe. I get into long discussions with my brother about the future outlook of real-estate, the economy, and the equity markets. According to the chart in 2010 and 2011 we should see more resets on mortgage contract. This is quite a popular chart and has been circulating around blogs, and news sources all over the internet. The real question is, if the market has already considered ramifications of the defaults. In other words, stock market pricing has already considered this factor of future defaults.
In case you haven’t notice the market in general has rebounded ~40%
The Coming Storm?
