I keep thinking 2011 will be around the bottom but then Japan took 15 years to turn around.

Japan has a cultural trait of honoring debts.

Here, on the other hand, tossing the keys is American as apple pie.

Why anyone things Americans, especially in SoCal, will bend over backwards to service and insane debt when they can either rent or buy the repo down the street for half as much is beyond me.

Double-especially when, thanks to our state law, they don’t have to. I would not be surprised at all if we saw 100% failures in the riskiest of RMBS tranches.