Still seeing 'subprime this' and 'subprime that', when we all know the REALLY big mess coming up ain't subprime at all.
Why is it so tough for everyone to see what we see? Maybe they know and just don't want to say?
When you see nationwide home values plummeting 10%+, and major cities like Vegas, Miami and Phoenix in total freefall, it's not just subprime that's for dinner. Nope, it's EVERY mortgage written the past few years that may be in trouble.
It's the IndyMac Alt-A garbage, and the First Federal Option Arm timebombs. It's the entire Countrywide portfolio. And it's regular prime loans made by regular lenders all over the country. It's all melting down now - any loan made 2003 - 2007 is suspect, especially when the rates adjust or the job losses mount.
And it infuriates me to no end to keep hearing reporting over here about the "dodgy loans made to poor people" who couldn't afford their loan that caused this mess.
IT WASN'T JUST THE POOR PEOPLE!!! It was the housing gamblers, failed flippers and mortgage fraudsters who brought down the system. A million Casey Serin's, putting no or little money down on lottery ticket STUPIDLY PRICED homes, and when prices went south, the f*cked buyers just walked away.
$1.2 trillion for subprime and we're good to go? I don't think so. Trillions in the plural will be lost by the time this is done. Trillions. And I'm looking for just ONE respected source to say it.
You want the truth America? You can't handle the truth.
Goldman sees $1.2 trillion global credit loss
Goldman Sachs forecasts global credit losses stemming from the current market turmoil will reach $1.2 trillion, with Wall Street accounting for nearly 40 percent of the losses.
U.S. leveraged institutions, which include banks, brokers-dealers, hedge funds and government-sponsored enterprises, will suffer roughly $460 billion in credit losses after loan loss provisions, Goldman Sachs economists wrote in a research note released late on Monday.
Goldman estimated $120 billion in write-offs have been reported by these leveraged institutions since the credit crunch began last summer.
"U.S. leveraged institutions have written off less than half of the losses associated with the bursting of the credit bubble," they said. "There is light at the end of the tunnel, but it is still rather dim."