From: "Rod Speed" 
Newsgroups: misc.invest.stocks misc.consumers.frugal-living misc.invest.real-estate
Subject: Re: Where did the 400 billion USD in subprime mortgage losses go
Date: Wed, 21 Nov 2007 13:17:49 +1100
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FrediFizzx  wrote
> Rod Speed  wrote
>> FrediFizzx  wrote

>>> Good example.  The money is still out there.  The people that sold at the top have the money.

>> No they dont when the whole market drops significantly due to the large
>> oversupply of houses that are the result of mortgage defaults with those
>> who should never have been given that mortgage in the first place.

> What the heck does that have to do with people that sold at the top?

Those had to buy something else to 'live' in and the value of that dropped too.

> This totally answers the OP's original question as to where the money went.

Nope.

> It doesn't just vaporize.

Corse it does when the whole market drops significantly.