It's no surprise that the banks are adjusting their risk calculations and receiving more 'jingle mail' (house keys in the envelope) as housing prices decline. Since McCain is talking about the economy now, can we see his detailed record from his long Senate history, where he speaks out against the system that his party and advisers created? What's that? He supported all of this? Oh...nevermind.
Mark Zandi of Moody's Economy.com estimates that 10.6 million homeowners will have zero or negative equity by the end of June, or 21 percent of first mortgage holders.
The impact of a new wave of defaults will also be potentially important.
Banks and other investors in mortgages, as has been seen, will take further hits to their already weakened capital.
While few might shed tears for banks, this means a longer and deeper credit crunch.
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