Apparently, large chunks of Option ARMs have been repackaged and sold on, supposedly insulating banks, but the remainder on banks books, which as stated above is artificially inflating profits is unpaid interest. What happens when that interest is never paid? Aren’t you going to see a lot of restated profits (losses)? No doubt banks will find a way to camouflage these losses. Seems interest isn’t the only thing that’s going to be deferred.
