DaveMcBlues

Bad Mortgages Are Only the Beginning

You're correct I think. Let's look at a small microcosm of the problem... Truck and SUV leases...

Assume: $300 million citizens in USA, 200 million passenger vehicles on the road, 20% are currently under lease, 40% are Trucks and SUVs (which have taken a beating in market values as of recent), and a presumed $7,500 expected deficiency between residual and market value at end of lease term.

Do the math... That's $120 BILLION of losses, that to the best of my knowledge hasn't yet been recognized by financial institutions at large.

IMHO, the $120 billion pails in comparison to the larger problem of consumer finance noted in your posting above.