Remember when I highlighted a 60 Minutes piece back in December that talked about this?
Well, now it’s happening.
Standard & Poor’s Ratings Service on Monday placed its ratings on $552.8 billion worth of U.S. first-lien Alt-A residential mortgage-backed securities issued between 2005 and 2007 on watch for downgrade, saying it sees an increase in losses from the transactions issued in those years.
S&P said it believes continued foreclosures, distressed sales, an increase in carrying costs for properties in inventory and more declines in home sales will further depress prices and lead to higher losses.
And you know what’s next after this? The Option ARMs. And then the commercial real estate market is up to bat.
All told, we’re looking at another trillions more in potential losses.
Get ready for a lot more pain folks. It’s coming.
This entry was posted on Tuesday, March 10th, 2009 and is filed under Banks, Economy, Housing, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.