Quote:
Originally Posted by sailaway21
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Yes i am having fun looking at some old posts on this thread. somehow the value of the sub-prime debacle has grown exponentially from back when Sway was neither worried nor panicky--perhaps because the financial world was doing more risky stuff than first realized. I have not kept a running total of the losses due to these mortgage "devices" but in doing a bit of googling it's apparent no one can figure the bottom line because so many of these mortgages have an unkown market value right now. How can you estimate the value of repossed homes in the hardest hit parts of the country--or in the loss of wealth suffered by each and every home-owner in the country due to the sharp decline in real estate values 9in the trillions of dollars)? The potential tax-payer liability for the Bear-Sterns bailout is estimated to be about $30 billion. Merrill Lynch just lost 4.65 billion in the second quarter and estimates it alone still has over 9 billion in "soured" mortgage investments. a Freddie Mac bailout could cost tax payers nearly $300 billion. that does not include FannieMae, which is in slightly better shape than Freddie.
It sure adds up fast, huh?