“However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.”
If we are to see steep declines in the desirable areas that would be starting right about now IMO. I don’t think they can totally bail this thing out, also as pointed out these Option Arms are heavily weighted to the high cost coastal areas especially CA. A huge bailout of these loans may not be very popular with the rest of the country. Who knows. I think the economy is worse than being reported. I only say that from anecdotal evidence from my work. I am in a sales management capacity with a very large mult-billion dollar corp. Our division gets an editorial every month on our percentage to plan. Nationwide July was the worst performance as a percentage of plan since they have been keeping records. This is business to business sales of a commodity like must have product being sold into basically every sector of the economy. The downturn became more acute in the last 6 weeks. Needless to say it is not exactly pleasant right now. My gut tells me we haven’t seen the full extent of the carnage here. I think the next 6 to 12 months will give the verdict. Just my two cents.
