Thread: Hussman: Mortgage Crisis Just Beginning

Hussman: Mortgage Crisis Just Beginning

Friday, April 18, 2008 8:26 a.m. EDT

The subprime mortgage crisis is far from over and may still only be in its early stages, says money fund guru John Hussman, who manages the $3.18 billion Hussman Strategic Growth Fund.
Hussman reckons the U.S. economy is just starting the game of mortgage defaults and has many more innings to go. He points to the number of adjustable mortgages yet to reset to higher rates — so high that many more foreclosures are inevitable.

"We appear to be quite early in the mortgage crisis, with only about a quarter of the cumulative resets having occurred. That places us near the start of the third inning, where we can expect each of the ‘nine innings’ to be about three months in duration.â€

I have heard it equaling or equating to the 4th inning in a nine inning baseball game