Foreclosure-Gate Is Deepwater Horizon All Over Again
Oct. 15, 2010
The evolution of the foreclosure-gate is starting to feel more and more Deepwater-Horizon like every day.
What really makes it similar — and this is a point we made yesterday while chatting with Tadas Viskanta on Abnormal Returns TV (watch here!) — is the seemingly unquantifiable risk to the banks.
It could be an enormous problem. It could be modest. There are so many moving parts to this that any guesses are bound to be just that: guesses.
Deepwater Horizon was similar. At one point in the middle of the summer, there was serious talk about BP going bankrupt and the entire Gulf of Mexico being permanently sullied. It was really, really difficult for anyone to say. And in the end, the fact that the pollution was not at catastrophic levels seemed to surprise almost everyone.