I did not miss that point, I made an assumption that a very large percetnage of those liars have already walked once they were severely underwater.
I expected and still expect damage from these loans. I now know that I underestimated how low interests rates could go and be held down for an extended period of time (which I be;leive is far from over now). I expected even more damage from the 5/1 ARM’s (rather than OA’s) which were the loans of choice in the nicer areas during the peak bubble times between 2004 and 2006. My best friend has a 5 year ARM interest only who I have been begging to refi into a 30 year fixed rate. He can afford to gamble (only a 300K loan and he makes well into 6 figures) so he never did. His loan is resetting next month and he just told his payment is going down more than $500/month.