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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (87653)	10/13/2007 9:28:50 PM
From: Tommaso	Read Replies (4) \| Respond to of 110194

What I want to know is, what happens when ten million bad credit risks at the bottom of this pile of crap cannot meet their mortgage payments, or choose not to, and walk away from the properties? If ten million deadbeats abandon that many properties, mortgaged (let's say conservatively) at $100,000 each, that is a lot of zeroes of bad debts. Add up all the zeroes and you get $100,000,000,000. Phooey! I thought it would add up to at least a trillion. Hey wait! I missed a zero! It does: $1,000,000,000,000. Now we are talking money. A trillion dollars worth of bad debts in the United States, supposedly secured by real estate. Now all this debt has been parceled out into sausages and sold to gullible buyers world-wide. All this sausage is infected with e coli. Too late for a recall. They all ate it.