From: "John A. Weeks III" 
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: Tue, 20 Nov 2007 22:08:42 -0600
Bytes: 2159

In article ,
 Blash  wrote:

> Wilson wrote on 11/20/07 12:36 PM:
> 
> > Where there is a 400 billion dollar loss there is a 400 billion dollar
> > gain.
> 
> Sounds nice......just NOT factual.......
> You build a house for $1million......a week later, dumb mikey moves in next
> door......once you meet him, you want out so you sell your house for
> $600K.....
> You've lost $400K......did anybody make $400K??? the answer is NO!!!

I'd love to have you doing my taxes with that kind of abuse of math.

The poster pays $1-million for a house.  He sells for $600K.  He
has a loss of $400K.  This is a real world loss.

Lets say he spent $800K, and the house was valued at $1-million.
He sells at $600k.  Now his loss is only $200K.

Who gained this $400K and $200K, the builder, who in turn paid
for workers and materials, who in turn bought stuff at stores 
and paid for raw materials.  That money kept the business cycle
going.

-john-

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John A. Weeks III           952-432-2708            john@johnweeks.com
Newave Communications                         http://www.johnweeks.com
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