Im not an expert, but if home prices have dropped on average 30% nationwide that would mean almost all the HELOCS, 2nds, pay option arms,are basically secured by nothing. Of course the foreclosures hurt the financial companies and maybe we;ve seen the bulk of those write downs, but i know from experience that the majority of all helocs and 2nds are secured by the last 75%-100% of home value... and there are A LOT of them. Have financial companies really already written down all of this now unsecured debt?
most of them are still 'holding to maturity' with very small writedowns, the stock analysts should be jumping on the ceos throats on the conference calls but I guess they are just all trying to help each other
I see. I watch these people on TV say that the worst is over. even the ceo of jpmorgan-chase said that. i wish i knew how to research and find out exactly where are the helocs and 2nds are being held..those companies cant stay solvent for long can they?