Losses and Zombie Debt in Residential Mortgage Surpass $5 Trillion

November 25th, 2009



Mortgage debt of $5.6 trillion is a bubble legacy and the most obvious source of a renewal of the financial crisis.

The application of bubble logic has been defiantly resisted by all quarters in contemplation of residential mortgage debt. High loss projections by masters of doom, Nouriel Roubini and T2 Partners, reach $1.5 trillion to $2 trillion. History may look upon these brave prognosticators as mere pansy pretenders.

A standard projection of mortgage debt levels prior to bubble oddity shows “erroneousâ€