A while back in OT, I had posted about Housing needing to get back in order. The Alt-A and Option ARM loans from 2005-2007 are in the beginnings of recasting (new higher payment), and will continue for the next 18-24 months. And, with unemployment the way it is...

The home-owner bail-out attempts by the Gov't can't seem to work. Banks are letting some non-payers get away with going for as long as 18 months before receiving a Notice of Default. Basically, free rent. How does a bank make profit if they do not collect their monthly payment...

Then we get the news on Goldman today. Everyone is pointing fingers at the evil banks, but there were just as many greedy home buyers who were trying to be junior flippers.

Housing took the Stock Market down before, and it sure could easily repeat.