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 15:34:41 +1100
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Bill Reid  wrote:
> 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)...

If it was that easy to predict, it wouldnt happen.

You dont get fiascos like that very often at all.