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Friday, December 19, 2008

T2 Partners: "Why There Is More Pain to Come"

by Calculated Risk on 12/19/2008 01:25:00 PM

There is a lot of great data in this report, but be careful how you use it.

From T2 Partners: An Overview of the Housing/Credit Crisis And Why There Is More Pain to Come (hat tip Chad)

T2 Partners Click on graph for larger image in new window.

This is an example of great data, but it could be very misleading. The total for household mortgages (including 2nds and HELOCs) is $10.57 trillion according the the Fed's Q3 Flow of Funds report.

If you start adding up the household mortgages on this chart ($0.7 trillion for subprime, $1.0 trillion for Alt-A, $2.1 trillion for HELOCs, $2.4 trillion for Jumbos, $4.6 trillion for Agency MBS, and $4.7 trillion for Prime) you discover that there is some significant double counting (most Agency MBS is Prime - so that is a huge source of the double counting).

There are similar problems elsewhere in the report, but overall the information is great.