Hussman: Wave Of Mortgage Resets Coming
To reiterate what the reset curve looks like here, the 2010 peak doesn’t really get going until July-Sep (with delinquencies likely to peak about 3 months later, and foreclosures about 3 months after that). A larger peak will occur in the second half of 2011. I remain concerned that we could quickly accumulate hundreds of billions of dollars of laon resets in the coming months.
– John Hussman, “Ordinary Outcomes of Extraordinary Recklessness”, Weekly Market Comment, March 15