Factzplz

Subprime Skeletons Are Still In The Closet

This is more of "the worst is over" hype to pretend there are no more problems. Goldman Sachs' analyst expects $700 billion more in write downs, Merideth Whitney of Oppenhiemer expects $45 billion at Citi alone. The bulk of the adjustable mortgages are coming this summer, with 1.5 million delinquent loans resetting. The worst may be over -- but maybe it is still coming. Notice how the inflation number was just 0.1% today as gasoline was down, or the April jobs number showed only 20,000 lost jobs, but Barron's analysis showed 296,000 lost jobs. The government is cooking the books -- so just wait.