PS, I love your posts. Very well written. However, your prediction of 75% (or 90%) default rate based on the fact (assumption?) that people have no equity in their home is a stretch. There are many factors that go into a default, but one big one is if the owner is unable to make their monthly payments. To say that 75% of owners are unable to make their monthly payment would require a bit more analysis beyond what you said. I would like to know the answer. But, the current default rate I believe is in the low single digits.
