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 08:12:55 GMT
Bytes: 3823


Rod Speed  wrote in message
news:5qhqriF104g7eU1@mid.individual.net...
> 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.

WRONG!!!

> You dont get fiascos like that very often at all.

Just frequently enough to be part of the "historical record"...but
certainly not frequently enough for individuals operating at selfish
greedy cross-purposes to realize en masse the hole they're digging...

Look, there HAVE been some real winners in these periodic
blowouts; I'm not holding my breath waiting for Mark Cuban
to go bankrupt after selling out right at the peak of the dot-com
craze, and I'm hanging on to MY pennies...and oh yeah, that
was what, a whole six years ago?

---
William Ernest Reid
Post count:  855