My expectation is that we will see this still-historically-low number move higher each month.
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My question is this....Given the now-repudiated lending standards + the enormity of recent debt issued, is it not reasonable to expect that we would blow out all historical numbers? My knee-jerk answer to that would be yes. So....why all of this complacency? There's an interesting mix of variables--each of them quite different from earlier years to now: interest rates (higher v. lower now); asset prices (most likely lower relative to qualifying income v. higher relative to qualifying income now); sub-prime lending (lower v. higher now); liquidity (lower v. higher now? ); alternative loans (lower v. higher now). Depending on how these variables weight then v. now, it would appear to me that we ought to see a parabolic rise in loan loss reserves.
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