Shocking Predictions in the News
I just saw this today. The article deals with how bad the fallout might be from the housing crash. Shocking quote #1.
Kathy Bostjancic is a senior economist for Merrill Lynch. She is predicting a top to bottom collapse of 35%, enough to offset gains of 55%. This is the first MSM I've seen with such dire predictions. Less shocking quote #2.
This is ignoring the rate of defaults on prime mortgages. How many prime mortgages default if prices drop another 30%? But don't take my word for it, slightly shocking quote #3.
But how bad can it all end up being? Not so shocking quote #4
Why? Home prices fell about 6% in 2007 and are expected to tumble another 15% in 2008, 10% in 2009 and 5% in 2010, said Bostjancic.
Kathy Bostjancic is a senior economist for Merrill Lynch. She is predicting a top to bottom collapse of 35%, enough to offset gains of 55%. This is the first MSM I've seen with such dire predictions. Less shocking quote #2.
Experts fear this is just the tip of the iceberg. There are $1 trillion in outstanding subprime mortgages, with potential losses estimated at about $250 billion
This is ignoring the rate of defaults on prime mortgages. How many prime mortgages default if prices drop another 30%? But don't take my word for it, slightly shocking quote #3.
Mark Greene, chief executive of credit analysis firm Fair Isaac Corp., warns that "losses on prime mortgages can easily be two to three times what they were on subprime mortgages."
But how bad can it all end up being? Not so shocking quote #4
"The amount of debt that's likely to go bad is virtually certain to be in the high hundreds of billions of dollars, and it wouldn't surprise me if it ends up crossing a trillion," said Baker.
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