I am reposting this to supplement the double dip talk.
As Whitney Tilson and Glenn Tongue of T2 Partners LLC showed in their excellent analysis and 2009 book "More Mortgage Meltdown" the foreclosure crisis is far from over. The problem loans yet to peak are the Alt-A loans, also referred to as "liar loans" because of the lack of documentation of income and assets (73 percent of securitized Alt-A loans). The Alt-A market is estimated to be 50 to 100% larger than the subprime market. The problems with subprime loans occurred first because their interest rates typically reset after only two years. Alt-A loans typically had five year resets. Alt-A resets began to surge in 2010 and they will continue to rise into 2012.
http://www.moremortgagemeltdown.com/
As Whitney Tilson and Glenn Tongue of T2 Partners LLC showed in their excellent analysis and 2009 book "More Mortgage Meltdown" the foreclosure crisis is far from over. The problem loans yet to peak are the Alt-A loans, also referred to as "liar loans" because of the lack of documentation of income and assets (73 percent of securitized Alt-A loans). The Alt-A market is estimated to be 50 to 100% larger than the subprime market. The problems with subprime loans occurred first because their interest rates typically reset after only two years. Alt-A loans typically had five year resets. Alt-A resets began to surge in 2010 and they will continue to rise into 2012.
http://www.moremortgagemeltdown.com/
