I guess the Mensa-member analysts at Moody’s, S&P, and Fitch have just now figured out that when you make 100% loans to people with crappy credit, especially in areas with over-heated real estate markets, they just may not pay the money back if their home price drops by 1% or more.

Also, it seems like Deutsche Bank is the new owner of about 1/3 of all new bank REOs I see. I don’t know if they are the actual owners of the loans, or whether they’re just the trustee.