default rates

Let's not forget that unprecedented government intervention is the only thing keeping the the housing and mortgage markets afloat. This level of support is so massive that many are wondering what will happen when the government finally pulls the plug.

The Wall Street Journal (subscription required) reports that "According to new numbers from the U.S. Department of Education, default rates for federally guaranteed student loans are expected to reach 6.9% for fiscal year 2007. That's up from 4.6% two years earlier and would be the highest rate...