Second Wave of Monetary System Failure - Option ARMs and Alt-A loans

The speaker suggests that the next wave of monetary system failure will be in the Option ARM and Alt-A loan market.  He suggests that this market will suffer more defaults than the sub-prime market has already suffered. 

While sub prime resets are shrinking as time moves forward, Option ARMs (such as negative amortization loans) and Alt-A resets are substantially increasing out to 2011.  The speaker believes that there will be much more pain as the asset bubble bursts.  However, he believes that Wall Street has figured this out and priced in this bad news.  He suggests that corporate america is on sale.