To answer the question: Which is next, I went scouring around to see if I could find some useful info.. voila.. a new graph courtesy of financial sight blog.
Entry for this is a bit dated.. but graph is interesting.
[img_assist|nid=8227|title=Non Performing Assets as %|desc=|link=node|align=left|width=466|height=343]
Select see original from image page to see the lettering. Higher on the graph is worse off. The big downward curved line is Case Shiller HPI. On the right, going down from the top is: Countrywide, Downey Savings, Indymac, a gap followed by Washington Mutual, Wachovia, Wells Fargo and Bank of America. The upward curve in Washington Mutual and Wachovia doesn’t look good. They are quickly leaving Wells Fargo and Bank of America behind on % of non-performing, just as Option-ARM resets are arriving.. and we all know that they played in that dirty pool of toxic waste!
Note the second hump which has a large Option-ARM component and correlate the start of the onset on defaults to the change in curvature of the default rate for Washington Mutual and Wachovia.
BTW: I don’t think Wells Fargo is safe.. and as a result of Bank of America’s purchase of CFC, I don’t think they are safe anymore. Here is more on Wells Fargo by Mr Mortgage..
I wonder if some of the banking industry is being a little lenient as to what is a non-performing loan right now!!
