There’s a greater than 50 percent probability that the financial system ‘will come to a grinding halt’ because of losses from mortgages, Gregory Peters, head of credit strategy at Morgan Stanley, said. ‘You have the SIVs, you have the conduits, you have the money-market funds, you have future losses still in the dealer’s balance sheet in the banks,’ Peters said in an interview in New York. ‘That’s all toppling at once.’But, at least I'm doing my part.
When the downturn ends, [real estate consultant John Burns] says sales activity will correct back to 1995 levels. But when will that be? Burns says it will hinge on downpayments. ‘When [current] renters can save up a downpayment, [to buy a home] then we will see the end.’