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Post by jeffolie on Jul 19, 2007 12:15:03 GMT -6
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke on Thursday said losses associated with subprime mortgages could reach $100 billion. "The credit losses associated with subprime have come to light and they are fairly significant. Some estimates are in the order of between $50 and $100 billion of losses associated with subprime credit products," Bernanke told a Senate Banking Committee hearing. news.yahoo.com/s/nm/20070719/bs_nm/usa_fed_bernanke_subprime_dc;_ylt=AgGTdM.GliP20pom3hENTQ3MWM0FThis is part of the cover up by government. With 2 million subprimes reseting in the next 12 months, at least $1 Trillion in foreclosure will happen. This is 10 times the $100 Billion Bernanke is forecasting.
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Post by unlawflcombatnt on Jul 19, 2007 14:11:14 GMT -6
I've heard Bernanke use this $100 billion number before. It's a completely unbelievable underestimate. It's the equivalent of the old "damning with faint praise" adage.
Just the direct effect of the coming downgrades in bond ratings will be over $100 billion. Contagion into other areas will be much larger.
If Bernanke had been hooked up to a polygraph when he said this, the needle would have jumped completely off the paper.
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Post by blueneck on Jul 21, 2007 11:35:48 GMT -6
Sounds a lot like the cover up of 90 billion in losses in the Savings and Loan scandal. Engineered in part by none other than Bush's forgotten brother Niel, the one we conveniently do not hear much about these days.
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