Some interesting points: The company forecasts prices in California to drop 16% to 20%, counting inflation.
Where are all the “experts” now, who said this can’t happen?
Already, 2.9% of subprime loans issued just last year are in default. That’s alarmingly high, Cutts says, and an unprecedented number of borrowers are not making even the first few payments.
I think we’ve all seen the Credit Suisse chart with billions of ARMs resetting over the next 5 years. More to come, I’m sure.
In San Diego and fast-growing inland cities, the economic pressure from collapsing housing prices may become exacerbated by job losses in the subprime-mortgage industry…
After the collapse of the Southern California defense industry in the early 1990s, prices took 10 years to reach previous levels.
In the 90’s 10 years of depreciation were the result of job losses. This time around the collaspe is going to cause the layoffs that will prolong the downturn. And it won’t just be subprime mortgage brokers.
