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 17:28:17 +1100
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FrediFizzx  wrote:
> "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.

Never ever could bullshit its way out of a wet paper bag