I have actually listened to Rich as he made a presentation to a class I took. I think you are going to see government interevention with respect to bad loans. Additonally the majority of the problemed loans are still coming back to job losses divorce etc. It has not been resets that are creating the majority NOD’s.
Additionlly % rates have remained low. Unemployment data is low. These are driving factors. They are not signaling a turn for the worst.
Builders and developers used option when they were buying land. They ahve walked away form many of their deals. Supply side economics suggests that they can prop up prices by reducing inventories. This is what they are doing. This type of fuding arragement was not around during the last downturn.
