I still think the bottom wont come in until morgage rates start to rise higher than about 5.75%. That is a full point above the low, and where alot of people will be forced to start recognizing that rates will go up. Then the ARMs that are living on borrowed time will hit the market and you will see the ‘flushing’.
Dont hold your breath. Bernakie seems to have not learned anything from the last time they tried to use accomidative financial policy to fix unemployment. He’ll default lower rather than higher and blow another bubble and not see it coming.
