rogersails

Don't Worry About Consumer Debt

The graph almost certainly looks at average debt. A look at median debt would probably show a much different picture. Wealth has become strongly skewed in recent years. One John Thain thrown in with 100 families in foreclosure paints a pretty "average". The lower 50% of the wealth curve is probably in real trouble.

ALT-A: The Coming Risk Abatement Disaster

The chart says it all. The remaining question is - How much of the Alt A and Option ARM damage has been anticipated in the writedowns to date ?

'No Shorts' Outperforming

Of course it's helping - for a while. In a normal market people sell short, then they have to buy to cover. For a little while, the shorts will all have to buy to cover to unwind, with no offsetting short sails. Once the short's unwind, they will perform wit, or worse than the market