Cow_tipping made a very good point on subprime on the OC tread. I’m putting the feedback here to keep the topics in order.

Here’s what he said about subprime.
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Nationwide its ~10% of total outstanding mortgages by number, not amount, but number. However that includes the 30 yr mortgages that originated in 1977. Last 3 years the sub primes were much much higher and that is nationwide. CA presumably has much more jumbo, alt A, subprime and no doc, and heck lots of super stretch mortgages as in someone who can get a 300K house, cant find one for 300 so he gets a 800K house hoping he’d be bailed out when his house triples in value. Huge huge numbers. And surprisingly, 2% is enough to crash the market. Housing without someone living in it cost you a lot …
Cool.
Cow_tipping.
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That’s an excellent point. The most recent mortgages in California are mostly subprime. Massive defaults on the mortgages issued the last two years may well crash the market.