Read Here for GREAT NEWS!!

I just saved money on my car insurance.

Now the bad news:
I'm very sorry about that because London's Financial Times says we ain't seen nothing yet. With a bit of an accent though.

According to an article written last week by Eric Uhlfelder, Credit Suisse maintains that about $1 trillion in Alt-A and option payment mortgages are scheduled to have rate resets in the next 30 months. These resets, the bank says, could cause as much future damage as the subprime crisis has already inflicted.

If these resets and the resulting increased monthly payments send defaults soaring, and given other factors such as job losses and falling home prices there is every indication they will, the bank projects that foreclosures over the next four years could reach nine million or 18 percent of all mortgages.

The newspaper estimates that there are approximately three million Alt-A loans outstanding with a value of $1 trillion. Fannie Mae, which owns or guarantees about 30 percent of them has called them loans with a higher risk of default than non-Alt-A loans.

Once again over the last several months I have published post after post about the size of the market to the point where people actually call me Dr. Doom which I am not. I believe the change in the political climate will induce recovery. We just don't know how yet.

-Christopher Rockey