It's early March. HSBC announced last month that their fancy new risk model for sub-prime mortgages hadn't held up as well as expected. Today I read on the front page of the WSJ that New Century (one of the main sub-prime lenders) is stopping all lending and may go into bankruptcy. There is a quote in the article from a mortgage broker who says "the last couple of weeks have been almost catastrophic".
It's early March. Almost seven years later to the day.
Time to short the housing market.