HP Memo to Ben Bernanke:
Add a few zeros next time.
Thank you.
HousingPANIC
Subprime losses could cost $100 billion: Bernanke
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that subprime mortgage losses could hit $100 billion and threaten consumer spending, but he sought to reassure lawmakers that the central bank was working quickly to strengthen lending regulations.
"The credit losses associated with subprime have come to light and they are fairly significant," Bernanke told the Senate Banking Committee in a second day of testimony on the Fed's twice-yearly economic report.
"Some estimates are in the order of between $50 billion and $100 billion of losses associated with subprime credit problems," he said, referring to a segment of the mortgage market that caters to borrowers with shaky credit.
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that subprime mortgage losses could hit $100 billion and threaten consumer spending, but he sought to reassure lawmakers that the central bank was working quickly to strengthen lending regulations.
"The credit losses associated with subprime have come to light and they are fairly significant," Bernanke told the Senate Banking Committee in a second day of testimony on the Fed's twice-yearly economic report.
"Some estimates are in the order of between $50 billion and $100 billion of losses associated with subprime credit problems," he said, referring to a segment of the mortgage market that caters to borrowers with shaky credit.
19 comments:
i saw somewhere that there are about 700 trillion worldwide in derivatives. and in the united states alone that figure is about 30 trillion. So where does he get the 100 billion figure. just like someone else said. this is just the start of the fun. the two troubled funds at bear stearns are now said to be worthless. where did the money go? who has it? that would be nice to know. who has the money that disappeared? this is the same scam that they pulled with the savings and loan fiasco. same game different name. too many times , americans depend on the advice of others pertaining to money matters when it comes to their retirement stashes. too many times, americans think that the system is dependable and this would never happen to them. well gues what? the people who lost the money at bear stearns probably thought the same thing. but now. well now they have nothing. and nothing is all they will ever get out of this mess, even after all the lawsuits....
i wonder just how far this contagion has infected wall street and just where the money trail will go as fund after fund falls and the money disappears. the markets are over 14000 and the dollar is sitting at 80.29 on the index. so with all that money people supposedly are making in the stock market, just exactly how much real wealth are they achieving?
********************************
Got zero's?
Every memeber of congress and the Fed!
they don't know and they know that they don't know -
"$100 billion" "fairly significant"
This is just word play on his part to help justify the "fairly significant" paycheck he and these other jokers cash.
Looks better than saying "we will be kicked in the financial nuts but we can't really say how hard or how many times"
Smug Bastard
Google just fell $45 during after hours
Black Friday?
i saw somewhere that there are about 700 trillion worldwide in derivatives. and in the united states alone that figure is about 30 trillion. So where does he get the 100 billion figure. just like someone else said. this is just the start of the fun.
==================================
I can remember clearly a speech I heard by an economist during Feb 1993. He stunned the audience by talking about the dangers of having $21 trillion in off balance sheet derivative obligations. I nearly fell off my seat as I thought that was an enormous risk.
Now there is $700 trillion of these fake paper claims draining the life blood out of the economy.
Your estimate of $30 trillion for the United States is way understated. One bank, "BofA" is holding $30 trillionoff balance sheet.
US institutions are probably holding $200-$300 trillion in derivative obligations.
In short they are BANKRUPT.
the two troubled funds at bear stearns are now said to be worthless. where did the money go? who has it?
The money went to whoever sold the house to the person who took out the mortgage. Or, if the loan was a HELOC the money went to buy SUV's and BMW's and other crap. When the loans don't get paid back the bonds that backed the loans are worthless.
If he says $100 billion you can believe it's probably much more than that. This is the soft landing language.
And the BIG Media goes right along with it all,never delving into the real risks to the public.Of course they have their standard CYA announcements,but neglect the basis of JOE SP's problem.
Wuddaclown,send in the clowns,watch me pull hat outta this rabbits ass,Ben Bernanke.
Well what do you want him to say??? The truth?? "Man the lifeboats - women and children first?". . .Ben will just have to be a "surprised analyst" also.
You think he meant 100 trillion?
So when are they going to start printing $500 and $1000 bills again?
Stop repeat offenders.
Don't re-elect them!
Ty 100 billion this year, 200 billion next year, 400 billion the folowing year and 800 billion when we hit bottom.
Uncle Ben's job is very simple these days: try to keep everyone from turning to gold as a safe haven for as long as possible.
anon said
"Your estimate of $30 trillion for the United States is way understated. One bank, "BofA" is holding $30 trillionoff balance sheet."
-----------------------------------
Good piece of information. Can you provide a source? It would be much appreciated.
anon said
"Your estimate of $30 trillion for the United States is way understated. One bank, "BofA" is holding $30 trillionoff balance sheet."
-----------------------------------
Good piece of information. Can you provide a source? It would be much appreciated.
July 20, 2007 6:46 AM
==================================
The General Accounting Office has been required to report the holdings since the late Henry Gonzales (Banking Chairman) forced them to report on this statistic.[It may still be fraudulent and understated but at least you'll get some idea just how bankrupt our banking system has become]
The report comes out quarterly and you can read how much off balance sheet debt our banks have sucked up each quarter.
The last report I read listed JP Morgan/Chase sitting on over $35 trillion with BofA in second place in the race to bakruptcy at over $25 trillion.
In the past, whenever Bernanke said something negative, I always doubled it in my mind. So when he said the losses could be $100 billion, I naturally assumed there would actually be a $200 billion loss.
Maybe it's time to reassess my thinking to 10 times worse then what Bernanke says?
I'm sorry derivative reporting (US bank holdings, qrtly growth etc.) is reported by Comptroller of Currency.
Post a Comment