More On Ireland's Housing Market.

Yesterday I posted on the absurd Ireland Housing Market Policy.

http://tradersutra.blogspot.com/2010/11/luck-of-irish-try-stupidity.html

The WSJ also had an article on Ireland.

http://online.wsj.com/article/SB10001424052748703514904575602650960629366.html

The WSJ piece has some real sobering and interesting facts.

-36000 borrowers or 4.6% of Irish mortgages are at least 90 days delinquent.
-200K Irish mortgages are expected to be underwater by the end of the year. This is 1 in 4 mortgages.

In the US.

-4.3% of US Mortgages are delinquent.
-11MM or 4.3% of all mortgages are underwater.

A few big differences.

US 10 Year yields are at 2.56%
Irish Yields are nearing 8%

This may be oversimplification, but stay with me.

So the US is effectively financing mortgages between 3.5%-4% with 10 Year Treasuries at 2.56%. This is not great but its better than financing 5% mortgages when your 10 Year T-Bond Rate is approaching 8%.
If GAZOO ever came down to Earth from outer space, he would be shaking his head along with Yogi Berra and the Aflac Duck.