The following has some scary statistics regarding the amount of outstanding ARM’s (Adjustable Rate Mortgages) that are already below the equity value of the assets they underwrote (estimated at ~$500B today):
Main reason I needed to post this was the following quote from the article:
“Every time I hear the phrase “Well Contained,” I am reminded of that amusing scene from “The Princess Bride:”
[Vizzini has just cut the rope The Dread Pirate Roberts is climbing up] Vizzini: HE DIDN’T FALL? INCONCEIVABLE. Inigo Montoya: You keep using that word. I do not think it means what you think it means.
“Well Contained”: They keep using that word. I do not think it means what they think it means . . .”