Total losses from subprime fiasco

[Zac]

Does anyone know the total losses from the subprime mortgage fiasco? I have seen 260 billion bandied about. Is this the booming economy that Bush fans talk about. Who actually sustains these losses?

[chi]

The foundation for the Bush economy is debt AND deficit spending. When the levee breaks their is going to be hell to pay. Neo-cons only see the "me" factor coupled with the "hear and now". They have the foresight of a house fly.

[macoyaks]

Well I do. I'm a hard money lender and can't get a loan done for anyone because the secondary market lenders are either out of business or suspending operations because they are stuck with too many foreclosures and they have no liquidity to complete new loans.

[information_police]

Hey, Chi Guy, speaking of levees breaking , I heard tonight that they estimate more people will lose their homes in this mess than lost their homes from Hurricane Katrina.

[Sid]

Republican's hope they are no longer in power when the dam burst.

[garyb1616]

The sub-prime market was fueled by the idiots that took these mortgages. This goes to personnel financial responsibility, I have bought and sold two homes in this market. Each time knowing my means. The Bush economy enabled me to do that at the low interest rates that were fixed. I guess we will need a new federal program or Bail out for not knowing your income and means according to the market.I think we forget the 11 to 18% intrest in the Carter years... but for some they think those were the good old days.

[Chef Trav]

The reason these loans are issued for high interest rates is because of the risk of loaning money to people with bad credit. Who sustains the losses? No one--these losses are priced in with the high rates. In other words, the issuers know that a certain percentage of people will default on these loans, so they make the interest rates high enough to cover their losses. Welcome to capitalism, where anything is available for a price.