HOUSING MARKET SLIPPAGE PORTENDS ANOTHER RECESSION

... SA rate of 1.99 chargeoffs on residential mortgages for the 100 largest banks is quite some warning signal. That's the worst it has been since 2010.  

Delinquencies for the 100 largest banks on residential mortgages are up to a staggering 12.13%, the worst since the third quarter of 2010. 
... the Fed has created a deflationary spiral. It's clear that banks need to tighten credit standards now. This is going to be plug-ugly. 

... we are into the worst of all possible scenarios in which the need for future saving is skyrocketing due to low investment returns, but lending decisions have to become more conservative due to a poor economy and the disproportionate role that the risk premium must now play in lending. When interest rates for prime borrowing are very low, the relative impact of risk is very high. 

COINCIDING WITH THE FISCAL CLIFF AND AN ARAB ISRAELI WAR, AND AN ATTACK ON IRAN, AND.... G-D KNOWS WHAT ELSE ... WE'D BETTER BRACE OURSELVES...