Thursday, Nov 15, 2007
Yes, Virginia, there are unforseen linkages......
MarketWatch: Toxic Export:How America's risky subprime mortgages fouled the world's markets
by DUTCHDAVEY 13 minutes ago
Okay the BBC answered my question. Accoring to Moodys) there are still around $1.3trillion in unsteady mortgages in the US which are going to face worsening terms in the years to come. Around half of these will be foreclosed ($600bn) and the properties sold. The sale proceeds, however, will only relieve the bad debt by around $400bn, leaving a shortfall of $200bn. Assuming, optimistically, that house prices dont go into a nose dive, which is quite likely to happen if people can't get new mortgages.
Don't forget: that $200bn is still out there!
Posted by lvmreader @ 06:40 AM (213 views) Add Comment
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