Posted by WARREN MOSLER on March 6th, 2009
Sub prime delinquencies still headed north.
Some of it attributable to government assistance that requires borrowers to be delinquent?
Also, while 20% is certainly a high delinquency rate, and includes several years with 2006 higher and others lower,
it is still substantially lower than markets seem to be discounting, as evidenced by the discounts on very senior AAA pieces.