by Calculated Risk on 3/10/2007 04:53:00 PM

Gretchen Morgenson writes in the NY Times: Crisis Looms in Mortgages. This article is a must read. A couple of quotes:

"I think there is no doubt that home sales are going to be weaker than most anybody who was forecasting the market just two months ago thought."
Thomas A. Lawler, founder of Lawler Economic and Housing Consulting, March 10, 2007

I think I was more bearish than most, and even I am considering revising my forecast downwards.

“There are delayed triggers in many of these investment vehicles and that is delaying the recognition of losses. I do think the unwind is just starting. The moment of truth is not yet here.”
Charles Peabody, founder of Portales Partners, an independent research boutique in New York, March 10, 2007