Still in Denial About Housing

How can it not get worse?

Now, We still have almost a trillion dollars of Alt-A loan coming due in 2009-2010. These folks are already 20% or more underwater in their loan and could not afford the normal payments to begin with. Once the teaser rate is gone and the loans reset, they are done.

Other than a rescue plan that dwarfs anything already done, things in housing can't do anything but get worse. One does have to wonder why Centex (CTX) and Toll Brothers (TOL) are still building new homes...