that's just the beginning. It's not just subprime. First American is letting 1300Full Time Equivalents go. Land America 1100. Countrywide 20%(!) of its staff. This will spread into the entire housing market. More and more defaults, more and more foreclosures, more and more REO's. With home prices going down, the refinance boom will stop overnight. Lenders tighten the money, less people qualify. Many shouldn't have qualified in the first place. I'm talking from the inside (and I have been bearish on RE and called the 2005 top and sold).
Anybody thinking this is just subrpime is ignorant of all the facts. I forecast a 40% drop in home prices in the once "Hot" areas, such as California, Phoenix, Florida. There is only one way this will end, and it isn't pretty.
I exited Real Estate in 05, exited consumer goods stocks and am long in Precious Metals (have been since 2004).