% mortgages NOT held by banks

[godoftrading]

FRB: December 2008 Statistical Supplement--Mortgage Debt Outstanding

Maybe someone can supply more current figures but if you 'fix the banks' it doesn't automatically follow that you solve the mortgage crisis.

 

[Technically Fundamental]

I dunno. If the banks bad debts (sub prime foreclosures, negative equity, bankrupcy and loans it thought it could create from depsoits that it will now never get) have all been written off or provided for through the P&L, which I suspect is the reason for these catastophic losses we are seeing, then I'm not certain on this but the bottom line picture I get is that the governments have basically been bullied into propping up an investment strategy that benefits an elite few and the banks have secured the most high profile low interest loan in history.

Anyone care to tear my theory to shreads?

 

[Hoggums]

Just look up Alt-A and option ARM mortgage timebomb on google.

The problem is still happening. Unless you buy up ALL mortgages good and bad - this problem will not go away.

 

[Technically Fundamental]

I thought that in essense that is whats happened. Hasnt the government bought up all the risk by buying a 50 billion shares for 1p each.

I'm in england btw so my understanding of US housing and bail out is limited

 

[Martinghoul]

I thought that in essense that is whats happened. Hasnt the government bought up all the risk by buying a 50 billion shares for 1p each.

I'm in england btw so my understanding of US housing and bail out is limited

The problem is that it's not just mtges, there's a whole lot of juicy stuff there, like leveraged loans, commercial property and other such things that are souring even as we speak (think RBS). No way the govt is anywhere near buying up/guaranteeing all the risk.