Hi Java

I wonder if you could explain this more...I have posted the picture rather than a link so that I don't have to dive back and forth when you answer



I will be the first to say I don't really understand the mortgage market but it would seem that the cause of the past problem was the extent of the "Sub-prime" mortgages which dominated the first 2 years of this chart. Those have virtually been wiped out now. They are being replaced by "Agency ARM" and "Option ARM" type mortgages...are these the problem ones?

Just from the shape of the chart Jan 2010 will be at bar 36 which relatively speaking is not as bad as June 2008 (bar 18) however Jan 2011 (Bar 48) seems as bad as at the height of the sub-prime era.

surely with a 2 years heads-up the banking industry/USA gov't will be prepared for the event.

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I am not a stockbroker. I retired four years ago and learned charting. The opinions expressed in my posts are my own. Do your own DD and accept or reject my comments as you please.