http://globaleconomicanalysis.blogspot.com/2006/10/easy-button-pent-up-supply.html Help out the US economy, China....please buy some of our houses...
http://www.bloomberg.com/apps/news?pid=20601103&sid=adbsVAhN68TM&refer=us " The default rate for subprime loans rose to 7.35 percent in July from 5.51 percent a year earlier, according to investment bank Friedman Billings Ramsey Group Inc. in Arlington Virginia. Nine percent of all subprime loans made in 2006 may default within five years, the worst performance since at least 1998, Glenn Schultz, head of asset-backed securities at Charlotte, North Carolina-based Wachovia Corp., said in an Oct. 17 report. " ...easy credit ripoff... good times...
Well fresh highs on IYR today (although it is an ETF for REITs) And I'm sure some mortgage defualts are priced in. Visa knows that X% or XX% of its accounts will default or be lost to fraud (that's why they charge 15-25% interest rates! The banks must know about defaults too.