Alt-A is the next big shoe to drop. Then, Prime. Real Estate Food chain is getting eaten from the bottom up. Pretty soon the top will begin bailing as price declines become more evident there too. Then we will have eating from the top and bottom. Classic collapse… Even the head of JP Morgan said “Prime looks terrible” the other day, noting a spike in defaults.
We need to look at trends for the future, not past results. It’s all about foreclosures. I’m afraid we are in unchartered territory.
