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Housing: 'We're About to Have a Big Problem'

I have been in and around mortgage banking for 30 years and have never seen so many "rich" neighbors losing it all. Q: Why? A: Over-leveraged and running out of collateral to borrow against. Their cash reserves go quickly and cash flow is declining rapidly - suddenly all those bills can't be paid. The tsunami has moved ashore and those on the hilltops that thought they were safe are getting washed away by the erosion below - the Big Mudslide. Over-leveraged and now going under water. Flippers - Subprime - AltA and then the Jumbos. We are in for a major reduction of wealth not just a re-distribution.