From: "Bill Reid" 
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 02:29:39 GMT
Bytes: 2844


FrediFizzx  wrote in message
news:5qhfkiFvj35pU1@mid.individual.net...
> "Rod Speed"  wrote in message
> news:5qgub4F103pskU1@mid.individual.net...
> > 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?
> This totally answers the OP's original question as to where the money
> went.  It doesn't just vaporize.

Oh, but it does, eventually.  Last time this question came
up, I mentioned my brother-in-law and sister kind of sold
at the top in one of the most expensive real-estate markets
and moved to the same size house in a much less expensive
market and pocketed the difference.  So THAT'S where the
money went...first.

Then of course they bought a boat, and then they needed a
new giant truck to haul it around, so the boat dealer and the
truck dealer got it, and so on.  So everybody wound up getting
a little piece of it.

But now THAT well is dry, so where is the NEXT $400billion
gonna come from?  I think my brother-in-law and sister and their
boat and truck dealers deserve an answer to that question...as do
we all, or at least those of us who are smart enough to even ask
the question (and answer it)...

---
William Ernest Reid
Post count:  854