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  • AmeriCredit: Risk Worth Taking [View article]
    We have a situation where the median house price will probably go from being $190 somethingk to the $140k area by 2010.

    Total residential real estate in US is $19 trillion now and total mortgages is $10.6 trillion. Take a 25% drop in house prices and you get $14 trillion or so worth or residential real estate and $10 or so trillion in mortgages.. equity becomes some 36% .. unprecedented. Frankly, it just wont' happen. $2 trillion of mortgages will simply have to be written off.

    $2 trillion in mortgage loans bound to be worthless.

    Got SKF?
    Jun 22 23:58 pm |Rating: 0 0 |Link to Comment
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