.... The subprime loan reset period (represented by the green bars) may be nearing the end, but the lightly-shaded yellow bars represent $500 billion worth of option-ARM loans expected to reset from mid 2009 through 2012.
In other words, the subprime mess was the earthquake and the next wave of option-ARM resets will be the aftershock no one saw coming.
"Ticking time bomb " (The Economist):
.... Although the overall value of option ARMs is lower than that of subprime loans—some $500 billion, according to Mr Strand, compared with about $1 trillion in subprime loans—their sting is more venomous.
No comments:
Post a Comment