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Seven reasons the market is not going up any time soon: #2 The next mortgage tsunami

Posted Jan 26th 2009 11:33AM by Michael ShulmanMichael Shulman RSS Feed
Filed under: Bad news, Housing, Recession, Financial Crisis

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Subprime mortgage defaults peaked and will slowly begin to slide during the next two years.

But don't get excited -- option ARMs and ALT-A mortgages are now beginning to rise at a very rapid rate. According to analysts I follow, notably Ivy Zelman, the next tsunami will be larger than the one we just went through.

And the banks are not currently valuing these mortgages as if they will default at this rate.

Be sure to read all 7 reasons the stock market isn't going up any time soon.

Michael Shulman is a contributor to OptionsZone.com.

Tags: alt-a, loan defaults, LoanDefaults, michael shulman, MichaelShulman, mortgage, mortgage crisis, mortgage defaults, MortgageCrisis, MortgageDefaults, mortgages, option ajustable rate mortgages, option arms, OptionAjustableRateMortgages, OptionArms, stock market nightmare, StockMarketNightmare, subprime, subprime loans, subprime mortgages, SubprimeLoans, SubprimeMortgages

Symbol Lookup
IndexesChangePrice
DJIA-14.2810,318.16
NASDAQ-10.782,146.04
S&P 500-3.521,091.38

Last updated: November 22, 2009: 10:19 PM

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