Monday, March 12, 2007
Lehman plays down impact of subprime mortgage defaults
"Mortgage defaults over the next two years may climb to $225 billion, probably not enough to be a drag on the U.S. economy, according to debt strategists at Lehman Brothers Holdings Inc. The forecast, based on an assumption of flat home prices,... Defaults may rise to $300 billion if home prices fall and tighter lending standards keep borrowers from refinancing, they wrote."Anyone else thinking this estimate is a little too optimistic?