[lbo-talk] mortgage probs deepen

[Doug Henwood]

Ed Hyman, who as I've pointed out before is Wall Street's favorite  
economist because he embodies tomorrow's conventional wisdom today,  
points out in his morning commentary that 1) better credits are  
either pre-paying mortgages or successfully refinancing, meaning that  
the remaining subprime credits are deteriorating in quality,  
suggesting more defaults to come, and 2) many troubled borrowers have  
more debt than their lenders realized, suggesting more defaults to come.