[cinives]

From the article:
As of June 30, AIG’s finance arm, which originates first and second mortgages, recorded delinquencies of 3.68 percent in subprime, 2.13 percent in non-prime, and 0.81 percent in prime.

The estimated inventory “shrinkage” of the average retail merchant is 2%, and they don’t get a foreclosed house to sell to cover costs.

Either the lenders knew their business, or they deserved their losses.

[RockinRight]

recorded delinquencies of 3.68 percent in subprime, 2.13 percent in non-prime, and 0.81 percent in prime.

IIRC that is actually less than most lenders now and pretty close to typical expectations. That's delinquencies, not defaults.