Huizencrisis in Amerika : De rauwe werkelijkheid

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S&P Slashes $34 Billion in ALT-A Securities. ALT-A…The Next ‘Crisis’
mrmortgage.ml
Posted on May 28th, 2008 in Uncategorized

I have written enough about ALT-A to fill a phone book, so at the bottom of this post is the story summarized by Bloomberg. ALT-A is where the real disaster in the bubble states like CA will come from.

The ALT-A crisis may make the subprime crisis look like a bump in the road when all is said and done.This story is really picking up steam lately, but it seems like as with the suprime crisis at the beginning, the mainstream media and definitely Washington is not giving this much attention. In my opinion, the ALT-A space collapsing could cause much larger crisis for the broader economy because ALT-A loans cut across all socio-economic boundaries and were used most heavily in in the nation’s most affluent cities/regions.

If you watch the video I did last month called ‘ALT-A Disaster Looming, Know the Facts’ I go over the loan characteristics of the ALT-A universe and while much is identical to subprime, the borrower class has an average credit score over 700!

Many said a year ago+ when New Century collapsed that they were the ‘canary in the coal mine’. I have always said ‘the entire subprime sector is the canary in the coal mine’.