This Just In: subprime defaults worsening, sky still blue

Well hold the presses!  Wouldn't you know - subprime defaults continue to increase!  Somebody, tell your friends - the terribly underwritten subprime loans brought to the market courtesy of New Century, Fremont, and the rest of the imploded subprime cartel continue to sour by the day.  Bloomberg reports: Late payments and defaults among subprime mortgages packaged into bonds rose last month, according to data for loans underlying benchmark ABX derivative indexes. After August payments, 19.1 percent of loan balances in 20 deals from the second half of 2005 were at least 60 days late, in foreclosure, subject to borrower bankruptcy or backed by seized property, up from 17.5 percent a month earlier, according to a report yesterday from Wachovia Corp. Prepayment speeds for the lo