More Sub-prime

Ken Houghton takes a good stab at estimating the size of the Absolute Worst Case Scenario in the CDO sub-prime market. Yves Smith adds some commentary.

Its worth a look.

I will only add a detail… there are sub-prime markets in things other houses…. cars for instance. I imagine for the most part, the big factor affecting the problems with housing debt don’t apply to cars except indirectly, so this shouldn’t be a problem. Or is there something else?