On Tue, Sep 23, 2008 at 10:45 AM, raghu <[EMAIL PROTECTED]> wrote:
> 1) I like the idea but I don't think the numbers are right. The 2.5%
> average delinquency rate is I believe for *all outstanding mortgages*.
> The delinquency rate for subprimes is, I believe, substantially higher
> (closer to 25%). Even with that higher number the idea is still good
> because it works on the trickle up principle rather than the trickle
> down favored by Paulson/Bernanke.

Here's a recent reference for delinquency rate estimates:
http://seekingalpha.com/article/96967-mortgage-delinquencies-continue-to-climb-watch-out-for-other-loans

(The Fed study from 2007 may be based on 2006 numbers..)
-raghu.

-- 
"I have a heart of a child... in a jar on my desk." - Stephen King
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