by Bill McBride on 3/08/2008 05:54:00 PM
Saturday, March 08, 2008
From Reuters: Banks face "systemic margin call," $325 billion hit: JPM (hat tip Anthony, RW)
The JPMorgan report included a revised bleaker forecast for subprime-related home prices. The bank now sees prices falling 30 percent, from its prior 25 percent forecast. Those prices have declined 14 percent since mid-2006, JPMorgan said.Is JPMorgan just talking about price declines for houses purchased with subprime loans? Or is the Reuters story adding "subprime" to the story line?
Note: Case-Shiller shows national prices have declined 10.1% through Q4 2007, so my guess is the JPMorgan estimate is for all houses and includes the decline through the beginning of March 2008.
Posted by Bill McBride on 3/08/2008 05:54:00 PM