From: "mich" 
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: Sat, 1 Dec 2007 13:47:13 -0500
Bytes: 2351


"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.


The seller of the $300 000 house has $300 000 in cash.

The buyer had a $300 000 house that's only worth $250 000.