I don’t know if the following is included in the list, but if not, it should be taken into consideration:
Many of the bad so-called “no-doc” (there are several variations of no documentation loans) loans made during the home buying frenzy of 2004, 2005 and 2006 have variable arms - many/most of which have not hit the fan, so to speak, but will implode in the next few years.
Hmm, happy times..../s
This def. is not over - the credit bubble has not popped yet either. Once that goes everything will topple like dominoes as well - because it’s a spider web. Bank A loans to Bank B - both Bank A loans to Company C - Company C loans to Company D - Company D gets another loan from Bank B - Well if Company C can’t make payments on their loans and goes into Default on their letter of credit then Bank A owes money to Company D - does it have that money? If Not then Company D will most likely topple and not be able to pay its loans - Bank B is out and Bank A needs to pay Bank B and so on and so forth!