Remember the WSJ said that Roubini's RGE Monitor is one of the best economic websites. I agree.
My biggest take away from the video was hearing all the potential shoes that can still drop in the credit world...hence the $1-1.5 trillion in losses.
-Near prime (think Alt-A, I have a good Mr. Mortgage video on that)
-Prime (We now have 1% delinqunicies here, that's 3x 06 levels)
-Commercial Real Estate (by product of dying consumers, btw consumption is 70% of GDP)
-Credit Card Loans (still haven't reached charge off levels of last downturn - more to come - especially since revolving credit now stands at more than $2.50 trillion outstanding)
-Auto loans (This is a big uncertainty)
-Student loans (It's definitely hard to receive one now than a year ago)
-Leveraged loans (Private equity is non-existant)
-Muni bonds (Think of Vallejo's recent bankruptcy, and Arnuuulds minimum wage decision in CA...lots of issues)
-Industrial/Commercial
-Corporate Bonds
Remember all this basically stems from one major source: The Housing Depression
Here's why it's a Depression
Demand has peaked...
But supply is at all-time highs and looks to keep growing...
Lower demand + Tons of supply = Lower home prices for all of us = More "underwater" mortgages = More delinquincies/walk aways = More supply....wash, rinse, repeat.
A lot of good info here.
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