DislikedSo it isn't really a question of whether sub primes will eventually affect other classes of loans-it's a question of whether home prices will continue to fall, which will have the effect of raising monthly payments on any loans set to adjust up to a higher interest rate since those loans also will not be able to re-financed at better rates.Ignored
i liken this situation to a market reversal. if everyone is long the market, and we have hard spike down, all the longs get panicked and start to exit, making the selloff much more dramatic than it would have been. we saw this type of scenario with oil earlier this year.
Relax and be happy.