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OLDFTB

Explain To Me Again How We Got Into This Mess

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This all started in the USA right?

Where millions of people with a checkered credit history,know as sub-prime borrowers, were granted home loans?

Their mortgage rates have now now reset to much higher rates therefore hundreds of thousands are now defaulting?

Also, because house prices are plummetting they are now in negative equity?

At current home prices, about $693 billion in ARMs are ‘already under water'?

The losses by banks etc so far amount to about 10 percent of the forecast of $100 billion in losses?

Hang on!

"Where millions of people with a checkered credit history,know as sub-prime borrowers, were granted home loans"

I think i've just answered my own Topic Title question.

"With nearly $700 billion in ARMs in negative equity facing interest-rate resets, ‘depending on how much lenders can ultimately recover, this implies (bank) losses will be more like $210 billion to $346 billion,’ she said. ‘And that’s assuming the situation doesn’t get worse"

What were they thinking! :lol::lol::lol:

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