From: "FrediFizzx" 
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 22:01:08 -0800
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"Rod Speed"  wrote in message 
news:5qhr25FvstqaU1@mid.individual.net...
> FrediFizzx  wrote:
>> "Bill Reid"  wrote in message
>> news:nKM0j.123036$kj1.50673@bgtnsc04-news.ops.worldnet.att.net...
>>>
>>> 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)...
>>
>>   I really thought that perhaps you were "smarter than a fifth 
>> grader". ;-)
>
> Heavy breathing aint gunna save your bacon child.
>
>> The money is still out there circulating, isn't it?
>
> No it aint if the entire market sags badly.

Please do yourself a favor and don't try out for "Are You Smarter Than a 
Fifth Grader?".  The first grade questions will most likely embarrass 
you.  Get yourself a good Economics 101 textbook.  Ignorance is curable. 
We are talking about real money here.  Not unrealized gains or losses.

Fred