October 04, 2007

Anyone keeping track of how many billions of dollars have already been lost on the housing crash and mortgage meltdown? Deutche Bank adds $3 billion

Between the banks, lenders, hedge funds, homebuilders and other bagholders, the acknowledged housing crash losses are already in the tens of billions. Nah, there was no housing bubble.


But wait, there's more!

Nobody is "marking to market" yet - they're all still "marking to fantasy". And they're only dealing with subprime, when we all know that trillions of dollars of true housing "wealth" has already disappeared if homedebtors' loans were truly "marked to market", and it's just gonna get worse. CEPR estimates $8 trillion for starters.

FRANKFURT, Germany (AP) -- Deutsche Bank AG said Wednesday it will write off about $3.12 billion in losses from the U.S. mortgage morass

Deutsche Bank said in a statement that it would take a charge of approximately 1.5 billion euros ($2.13 billion) on residential mortgage-backed securities, structured credit products, along with as much as 700 million euros ($991.6 million) on its leveraged loans and loan commitments.
The troubles at the German bank underscore the widespread impact of failed U.S. loans to people with weak credit, also known as subprime mortgages. Similar writedowns are hurting other big banks, including Citigroup and UBS, though analysts believe that investors and not account holders will feel most of the pain.

32 comments:

Anonymous said...

The world is approaching an end of an era. America’s moral collapse now lies exposed to all—a virtual death sentence to an economic system based on trust. Confidence lost, America’s reputation as a financial safe haven is being replaced with subprime status—and as foreigners have found out, subprime risks just aren’t worth it

borkafatty said...

Ehh! a few Billion here a few Billion
there...it was all Play Doe anyway..I am just sorry I missed out on all the funny Money...not next time though..I am "ALL IN"..unless of course I die first.

Happy European said...

Hach, Josef Ackermann must be delighted to see how many "tüchtige Leute" have been working for him; they probably confused investment and gambling, were just in for short-term profit to cash in the nice Christmas bonus. The world would be better off without the likes of Ackermann

Anonymous said...

I was thinking of the same thing myself. I was going to compile a list but I didn't even know where to begin.

It's just interesting to see that so many investment professionals, MBA's, 10-20-30 years experience, working for big powerful name investment firms screwed up this bad.

Anonymous said...

The fed printed as much money as was lost.
A trillion lost in housing, A trillion printed up at the fed.
100 billion lost in the stock market, 100 billion printed up at the fed.
The largest transfer of wealth is happening right now.

Anonymous said...

Yes, it going to run in the 100's of billions easily.

http://tinyurl.com/yrtjnu

FYI, the above link is to a CNN article that indicates a stealth bailout is already underway to assist mortgage lenders by racheting up a Depression Era mechanism to provide "liquidity" for mortgages, which in turn permits the mortgage banks to keep their revenue stream going at a time when market forces are refusing to so the same. Hence it smells of bailout to me in a stealthly way. Its our tax dollars and they are being put at risk because they are going where private dollars fear to tread due to the real potential for losses!!

Anonymous said...

Hang tight, Merrill wants to participate too.

From ft.com

http://tinyurl.com/yul5w8

Anonymous said...

according to marketwatch.com the police are now after the orange one
hes been ordered to open his books
suspected of unusal trading

Anonymous said...

We are losing about 2 million a month in realestate commissions a month in Colorado Springs. I feel the government should bail these poor guys out. They need help so they can maintain their lifestyle while they retrain for McDonalds.

We are a city of 400000 so multiply that times 10 for Phoenix. Then add appraisers,LO, construction workers,heavy equipment rentals,lumber,appliances etc. I think you get the picture.

NO RECESSION IN SITE!!!!!!

Happy Homedebtor said...

$8,000,000,000,000? So housing across the nation is going to fall 30-40% on average, eh? Wow man...I so need some of the stuff you're smoking today.

** 30-40% based on:

100,000,000 homes
Avg Value of 200-250K.
By no means exact science, but a reference.

Anonymous said...

MBA's, 10-20-30 years experience, working for big powerful name investment firms screwed up this bad

IfI noticed that most of the structured credit division chiefs were only in their 30's. That means they had only about 10 years work experience. They never faced a housing recession or any real recession for that matter. The banks threw caution out the window and replaced experience with diplomas and theories. Now they are paying the price

kilgore said...

"Marking to fantasy"

I love it!

And to the anonymous guy who thinks there's a massive "transfer of wealth" happening, my question is who is on the receiving end of this? Because I think that everyone who holds dollars right now is getting poorer. Everyone who holds gold/oil or other tangible assets is staying even. The only beneficiaries that I can see from this "transfer" are the bankers who will be able to keep their jobs for a few more quarters thanks to Bernake's liquidity gift. Other than that, everybody loses.

Anonymous said...

Anonymous said...
according to marketwatch.com the police are now after the orange one
hes been ordered to open his books
suspected of unusal trading

October 04, 2007 5:13 PM
--------
Umm DUH?!! Did they finally take a look at HP or do a quick google search after 2+ years of insider trading activity?

Real Estate Connection said...

Keeping track if I could count that high, I would try but as fast as things are changing my head is still spinning.

Anonymous said...

What about the Wealth Destruction that has already occurred due to falling prices on land and all real estate? Anyone have any guesstimates? I think it's over 2 trillion already

Anonymous said...

US GDP is $13 trillion. That's 13 thousand billion for those of you who went to a publik skool.

So a few billion were lost in mortgages by a couple of banks.

Oooooohhhh. Scary stuff indeed. I wonder if we'll ever recover.

Anonymous said...

There is news coming out that RENTS will rise as more homes go into foreclosure.. How can this happen if all those condos or townhomes that go into foreclosure will be turned INTO rentals.. FURTHER increasing rental availablity??

I think it's just a way to scare people to buy real estate NOW.. Correct?

SubSonicRumbling said...

And they just will not stop. Look at who the sponsors are on the left. Then look at who should attend this conference.

http://www.mortgageindustrydiversity.com/

Look at the numbers we are talking about, over a million between 2005 and 2006, and that number was down from the year before. So if this has been going on since 2001, do the math, we could be in some big doo doo.

http://www.marketwatch.com/news/story/number-minority-home-buyers-down/story.aspx?guid=%7B7DF8B485%2D3D83%2D4251%2DA2E9%2D4DA96E086FAF%7D

Anonymous said...

Anonymous said...
There is news coming out that RENTS will rise as more homes go into foreclosure.. How can this happen if all those condos or townhomes that go into foreclosure will be turned INTO rentals.. FURTHER increasing rental availablity??

I think it's just a way to scare people to buy real estate NOW.. Correct?

October 04, 2007 9:29 PM


==============

Not really. Those foreclosures will be held by the banks. Banks are not in the business of landlording. And besides do you think banks will want to rent to the people they just foreclosed on? They can't pay a mortgage, why would you rent to them and have to go through the evuction process 6 months later when they can't make rent?

Anonymous said...

US GDP is $13 trillion. That's 13 thousand billion for those of you who went to a publik skool.

--------------------------------------------

I came up with 13 million thousand.

telling it like it is said...

Man, just think if bush and cheney were to stay in office for another 10 years!

Although, I'm not sure if there would be anything left for them to destroy.

Funny how our elected officials think bush is the best president ever and dont even consider to impeach him.

Let the fall and destruction of America continue! Weeeee! What a bunch of criminal assfu*ks.

Anonymous said...

Banks are also not in the busines of keeping an NPA on the books. They will dump REO's and race the homebuilders to the bottom. The idiot who bought in 2005 for $600,000 will have a neighbor who bought in 2008 for $300,000 and another neighbor. What will the FB do?

Anonymous said...

Man, I should have gone long on ink mfrs for currency.

Hey superpower..wave the flag...let that single tear drop. "The best nation on earth!" Eagles flying everywhere...pathetic.

Anonymous said...

US GDP is $13 trillion. That's 13 thousand billion for those of you who went to a publik skool.

So a few billion were lost in mortgages by a couple of banks.

Oooooohhhh. Scary stuff indeed. I wonder if we'll ever recover.


DOPES, is that you??? C'mon, you know that the monkey in charge went to Yale and look all the crap he's done in a few years. Let me tell you about an episode that made Generalissimo Gonzales a somebody. Well, it happens that a bachelor, with an influential family, who loves to sell America to the Saudis and the Chinese *wink wink*, was driving drunk with the car full of prostitutes in Texas, when the cops busted him. Guess who got the driver out of the hook? You guessed it...Generalisimo Gonzales! The until then nobody. You voters are geniuses! Vote for Giuliani, geniuses!

Anonymous said...

And to the anonymous guy who thinks there's a massive "transfer of wealth" happening, my question is who is on the receiving end of this? Because I think that everyone who holds dollars right now is getting poorer.

Do you really think that the wealthy or the Bushie cronies hold dollars in the US? C'mon, you are smarter than that. Even I have accounts in Switzerland and Uruguay...imagine them. And I'm a nobody compared to all the billions they steal from the phony wars and your tax money. Keep on spinning that hamster wheel faster because Giuliani wants the lunch money from your kids...just shut up, wave the flag, watch Faux News, and spin the hamster wheel...like the docile little sheeple you've always been.

Anonymous said...

Hach, Josef Ackermann must be delighted to see how many "tüchtige Leute" have been working for him; they probably confused investment and gambling, were just in for short-term profit to cash in the nice Christmas bonus. The world would be better off without the likes of Ackermann

Man, you got my respect because I've never met an Ackerman that wasn't a major a$$hole! Talk about your greedy mofo who wants to screw everyone in sight. Funny thing is that they are every weekend at the Chabad...sooooo religious....go figure!

Anonymous said...

Add 5 billion from Merrell Lynch for the 3rd QTR!!

Anonymous said...

Merrill is contributing $5.5 billion.

http://tinyurl.com/23df8o

Anonymous said...

ah, but you didn"t see that hot teenage mortgage banker on a friday night drunk...in phx,,,,trillion, here trillion there ...whatever dude.....

Anonymous said...

anon 7.35.....stop shilling for bush......

Anonymous said...

http://tinyurl.com/yoqof7

20 BILLION & counting for just one quarter and we're just starting!!!

http://tinyurl.com/244djn

FDIC recommends that all loans be set at the teaser rate for the life of the loan as long as they are current & an owner occupier just to avoid an economic catastrophe

Where do I sign up!!!

St alphonzo said...

You're with forgetting that the CDO's were leveraged with miniscule reserves because of their 'AAA status'. ( I read a fantastic ratio that I cannot believe, but whatever it is a hundred billion turns into trillions going the other direction...with more to come).
In engineering, we call this the downside of a parabolic.

Also, foreigners are tired of dubious T-bonds and bills and are now buying our tangible assets (maybe they will buy some of our 4000/ft2 houses in So Cal?)

The only reason the market is so high is that there is so much liquidity looking for someplace to go (remember the Asian crisis, diaper dandies?) and that's levereged like crazy too. Better ask yourself, what's in your wallet?