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We're at 2007 levels, not 2006, and only about 30% are using mortgages, as opposed to 60%, but if you think the housing market is getting dumb, just wait.
I wonder if they'll get the chance to be really stupid. The bond/equity bubble might pop before this can get off the ground. This is a funny coincidence: ... Kinda funny if the DOJ was the pin.Deutsche Bank’s riskiest bonds fell on Friday after it emerged Germany’s biggest lender faces a $14bn claim from US authorities to settle allegations of mis-selling mortgages.
Daniel Davies of Frontline Analysts estimates that for the bank to miss a coupon payment on its AT1s it would need to undergo a hit to tier one capital of €7.5bn. Taking into account pre-tax profit and existing litigation reserves, he estimates that this would correspond to a fine of $14bn.