There is no hope for America's housing market. This chart explains why.

It is the subprime borrowers that dies first. For the next two years, every month, hundreds of millions of subprime mortgage debt will reset, pushing the hapless borrowers into delinquency. This has already begun to happen. Currently, 13 percent of sub prime lenders are behind in their payments. Judging by this chart, we haven't begun to see the worst of this particular financial disaster

Once that wave of default and foreclosure slips away, another equally devastating blow will hit the housing market. Servicing costs for prime ARMs, Alt-A, and option ARMs all begin to increase. By then, the average homeowner will look upon the housing bubble like an old man looks upon this first love - a sweet and distant memory.

The housing market will have no time to recover. This disaster will continue for at least another 5 years. Only then, will the market have a chance to breath again.

This chart first appeared on the OC-fliptrack blog. It is first rate source housing bubble developments Orange County housing disaster.