confused, today I note that the banks have wrtten down 43 nbillion in mortgages?

Question

doesn't this mean thta there are this much ( 43 bill) of mortgages that are not going to be repaid, is this correct assumption

Answer 1

Essentially you are correct and what's worse, is the poor people who will have lost their homes in the process.

Equally, the backlash America will now suffer because of the greedy mortgage brokers who sold dangerous loans to the people who would eventually not be able to afford the repayments, could well prove to be worse than the great depression. Why?

US Dollar has lost circa 20% of its value as a result over the past few months. Yesterday's forecasts now suggest a further 20% is imminent. Possibly more if the Chinese switch their enormous funds out of the Dollar into the Euro.

Whatever happens, oil is one of the first areas to affect us after the housing crisis. Oil is paid for in Dollars and over the past copuple of years has moved from $28 a barrel to today's rate of $98. That's why it costs so much more at the pumps.

In turn, all transport costs have risen and will continue to do so. This means food will cost even more and, many other products & services.

So, next time you see the term 'Creative Mortgage Financing' or something similar - walk in the opposite direction, fast.

Meantime, prepare yourself for a severe recession in about 3-6 months.

Incidentally, though this message might appear a tad pessimistic, I promise, I am very much the optimist and already have my plans for the oncoming turmoil well in place.

Wishing you well and success in whatever you do...

Answer 2

PI is dead wrong. This was NOT caused by "greedy morgage bankers" it was caused by the "poor people" who wanted instant gratification, who LIED about how much they made or failed to fully understand what they were signing when THEY applied and THEY asked for a sub-prime loan to allow THEM to get a bigger house then THEY KNEW they could afford.
America has become the land of NO personal responsibility. Everyone wants everything NOW and if they can't pay cash, then they put it in plastic and then when they can't pay the bills THEY created, oh poor me.
The sub-prime lenders were salespeople SELLING a product. If you bought that product then YOU decided that it was in YOUR best interest to do so. Nobody held a gun to your head.
Failure to understand what you were signing and the risks involved in sub-prime lending are NOT the fault of greedy business people; it is the fault of the people who signed the applications.
The REAL investors in real estate are now having a fieldday and I for one am haveing a great time buying property at discounted prices. Just like the dot com bubble; the herd gets shafted because they do not INVEST, they gamble. This time they lost that gamble and will ALWAYS lose because they do not take the time to LEARN how to invest, how to handle their finances, and how to manage money.
Buying just because the market is going up or just because you see other people making money trading real estate is NOT a reason to buy a house that you can't afford.
Also blaming the weakness of the dollor on subprime is not very accurate.

Answer 3

It means that they are losing that amount of money through bad mortgages. They are collecting SOME of the money, as they foreclose these houses, and the houses are resold to other owners. However, this amount represents the shortfall between what they are owed and what the sale of the properties brings in.

This is not nearly done yet. Economists estimate that, when the foreclosure fiasco is finally done with, losses will range from $175-$200 billion total.

Answer 4

It means they are downgrading the market value of those repackaged mortgage CDOs by that amount on their books. It doesn't affect the terms of the individual mortgages within the CDOs.

Answer 5

properly, I see quite a few questions right here. it sort of feels obtrusive to me you like our concepts. interior the scripture there are those questions. "in case you adore people who love you, what reward will you get? at the instant are not even the tax creditors doing that? And in case you greet only your brothers, what are you doing extra advantageous than others? do no longer even pagans try this?" it sort of feels that this scripture is looking us to question our motives interior the flaws we do. it incredibly is elementary to study those scriptures and agree yet could be very no longer elementary to be conscious by way of fact it is going against human nature. Your different question: ."...doesn’t the potential of unconditional love look somewhat extra proactive? " confident, it incredibly is. Unconditional love is a crucial key to showing the affection of God and having peace in our own lives. upload...Bobby makes a great element. What we sort speaks louder than any words. while we prepare unconditional like to our kinfolk and our brothers and sisters in Christ, it incredibly is the main efficient Christian witness we could in all probability show. God bless you, Primo. (((((Bobby)))))

Answer 6

If I understand your question, Yes this means they have 43 billion in bad loans that they can not collect.