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How Far Down?

Here's a new report from S&P on the state of residential mortgage-backed securities. It says that of the $3.7 trillion issued since 2004, what's left is now valued at just $1.7 trillion. And that there could be another $375 billion to come.

Mike Thompson, whom we've had on the podcast, worked on the report. He told the Wall Street Journal:

"There are going to be more defaults, but the worst of the big downward lurches are probably over and the systemic threat from the residential mortgage market is diminished."

The International Monetary Fund yesterday estimated total losses on all kinds of toxic assets globally. It put the number at $4.1 trillion.