I’m torn, I agree with socratt and huckleberry and zeitegist all at the same time. I’ve heard it too many times to believe it, I’ve also seen every zig be met with a zag so likely there will be some form of intervention but I also realize that jumbo’s are not politically correct. It’s one thing to see some poor janitor and his 5 kids on the news being tossed out and everyone feeling sorry for them, but quite another for the million dollar home crowd having to load the bmw’s with all their posessions, the press would attack the gov’t if they bailed these folks out.
The only thing that doesn’t make sense is the size of the crowd that has prime jumbo loans and job losses. I’m sure there are plenty, but are there really millions? Most of the unemployed in the numbers between the good days of 5% unemployment and today’s 11% unemployment were the marginally employed and recently employed, not all but most. The demographic that takes prime jumbo’s tends to be better employed and better equipped to become re-employed, they took a hit but a smaller one thus far. Not enough for a theory, but it does raise some doubts that this comes to fruition like subprime did.
