The Residential Real Estate Post-Crash Index-Moderated Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Giordano Bruno who wrote (13439)	3/23/2011 11:33:50 AM
From: Roads End	6 Recommendations Read Replies (3) of 119360

Heinz blog yesterday featured a blog by Ramsey Su and Heinz added a footnote to it. His back of the envelope calculation goes like this. "stress tests or no stress tests, the banks are sitting on nearly $3 trillion in mortgage credit, much of which is valued at 'extend and pretend', or as Citigroup calls it 'reasonable stab' valuations, in contravention of all principles of sound business accounting. Were that not so, i.e., were the banks forced to mark all this toxic debt to market, we suspect that many of the nation's largest banks would have to either declare their insolvency or be bailed out all over again. Meanwhile, the collateral underpinning these loans keeps falling in value, with scant hope of recovery. At present, the average recovery out of RE foreclosures for lenders is in the region of 33%." acting-man.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next