Well their RESIDENTIAL morgage defaults are not predicted to peak until 2011 earliest, they say.Yes, the honeymoon periods you mention are a factor. But a crash in the commercial property sector hasnt happened..... yet. When defaults start there, how many banks or financial institutions could possibly collapse there?
What exposures do our banks & financial institutions have to their commercial markets -real estate & financial? Getting feelings of unease. The Yanks are starting to feel they are out of the woods, but they are not. Only the other day in Bloomberg someone warned that those darned toxic waste derivatives are re-emerging in a big way in the interest of greed & greater profits. Lesson not learned.Not one bit.
