Study: $180 Billion Max Mortgage Losses On US Owner-Occupied Homes

Study: $180 Billion Max Mortgage Losses On US Owner-Occupied Homes

www.nasdaq.com

Homeowners struggling to make payments on their own residences are only a small part of the overall financial crisis gripping the U.S., according to a new study from researchers at Ohio State University.

Under a worst-case scenario, the study from economics professors Randall Olsen and Lucia Dunn estimates total losses on first mortgages of owner-occupied homes could climb as high $180 billion.

"You're not talking about a number like $700 billion. That's just not right," Olsen said, referring to the price tag of bailout legislation House members rejected in a dramatic 205-228 vote Monday.

(visit the link for the full news article)


Related News Links:
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We are being railroaded, folks. Time after time, politician after politician, "expert" after "expert" all we've heard is how this current crisis is largely the fault of the American homeowner and their risky & failing mortgages. Turns out, it's a bunch of crap.

$180 Billion dollars... ONE HUNDRED AND EIGHTY BILLION DOLLARS. That isn't $700 Bil, nor is it the half Trillion + dollars the fed has pumped into the market recently, nor is it the Trillion in quick loans & buyouts they've bolstered the banks with in the past year. It is a fraction of all of that.

This study leaves absolutely no doubt in my mind that we the American tax payers are being ordered to pay for the mistakes of Wall Street above, beyond, and independent from any small mistakes we as a whole have made to contribute to this crisis.

Look at the additional links I'm adding to this!

The problems in our economy are extremely complex, but at their core is uncertainty over "mortgage-backed securities."

-GWB (Link1)

McCain said the Treasury Department should use an already approved $1 trillion fund to buy up bad mortgages.

(Link 2)

Two years ago, I warned that, because of the subprime lending mess, because of the lax regulation, that we were potentially going to have a problem and tried to stop some of the abuses in mortgages that were taking place at the time.

Obama (Link 3)

I'm still searching for more incidents where prominent figures pinned this on mortgages & on the American people. Obviously it's difficult when every single news story pertaining to it refers to this as the "mortgage crisis"... Hmm, well, maybe there's my final link. Do a news search on your favorite site for mortgage crisis and notice how even the mainstream media is pegging the whole financial crisis to mortgages and, by default, trying to place blame for it on the American people to make the case that it is us who should shoulder the financial burden of saving Wall Street.

www.nasdaq.com
(visit the link for the full news article)

I work with housing data regularly. My sense all along has been that there is no way 1st mortgages were behind the subrpime mess. I just couldn't find any studies to confirm this. Thanks for the link. When you look at the foreclosure clusters is suggested speculators were behind alot of this.

And yes, we are being railroaded.

Absolutely staggering.

The difference between the two figures is actually grotesque. It really makes you wonder what the extra $520 Billion is buying for someone. How many people, how many lives, how many firms can you buy-up for that kind of money?

reply to post by Merriman Weir


Not just the $700 Bil, what about all the billions our government has auctioned or flat out given to the market since the Bear Stearnes bail out? If this $180 Bil figure is correct, then those mortgages were long since cushioned against by our federal injections into the market.

So, what the hell are we paying for?

Correct. I actually pointed this out in another thread. Before the bank caused recession the % of people late on their bills and going into foreclosure was 3%. THATS IT!!! This is ENTIRELY the banks doing. They refuse to lend to each other and us people unless we pay them that is all this is. Blackmail. You give us this or we will do this to you. The banks really have us by the balls and I think this should be a wake up call to all. NO MORE DEBT! If you cant afford to pay for it dont buy it. We have to take our country back from these thieves and that is how we can do it.

Originally posted by burdman30ott6
This study leaves absolutely no doubt in my mind that we the American tax payers are being ordered to pay for the mistakes of Wall Street

None of what is happening are mistakes my friend

Good Luck!

$180 Bn sounds realistic & truthful enough.


note that Freddie Mac & Fannie Mae were 'bailed-out' for $200bn
be aware that FRE & FNM... owned/held 50% of all mortgages in the USA



the present 'bail-out' is alledged to be for the other 50% of private/commercial mortgages that financial firms & the Fed & Treasury claim are "Crashing" the American economic system


answer me this... If 1/2 of mortgages can be saved by the $200bn provided to Freddie/Fannie

Why will it now take $700bn to save the other 1/2 of the mortgages, mortgages made by the big banks and brokerage houses ??
that means there is a half a Trillion dollars difference in the values of mortgage portfilios of the GSE banks & the commercial/investment banks

I'm not buying it !!


what i have a sneaky suspicion of, is that:
the Fed/ the Treasury/ the Administration
are distracting the congress & the public with the mortgage 'distraction'
while they perform the disappearance of a continusiously revolving $700billion slush fund which thiose 3 leaders control (& essentially own)

reply to post by St Udio


I think you can add the House & Senate onto your list of controllers, St Udio. Clearly they wouldn't approve this without some serious compensation. It also bears repeating that Rep Mike Burgess of Texas said on Monday that all the debating & contentious discussing between the parties last weekend that was supposedly to "hammer out the specifics of the bill" actually had very little to do with the bill and were, instead, focused largely on what to tell the American people, how to sell them this horse pill, and how to get them to swallow it.

"OK, Nancy Pelosi, we'll make sure your portfolio swells to ridiculous proportions, too. We just need to decide now if we're going to tell the tax payers we're doing this to prevent a second great depression or a lengthy recession followed by a decade of zero growth..."

Ive done my part. Ive contacted both Senators for Florida and let them know how I feel. If people dont step up and contact their representatives then we deserve what we get. People need to step up.

reply to post by burdman30ott6


Now, for all those that keep saying how they don't want to pay for the 'idiots' that got themselves into this mess. Well, it's not your neighbor being foreclosed on that got you into this mess. It's the government and the criminal financial 'experts' that did it.

Nice post.

Originally posted by mybigunit
Ive done my part. Ive contacted both Senators for Florida and let them know how I feel. If people dont step up and contact their representatives then we deserve what we get. People need to step up.

I have done the same for Ohio. I even quoted Thomas Jefferson's statement about the private banking industry. It's important that they try to avoid being pressured into signing this bill by this corrupt administration and this corrupt banking family.

Originally posted by burdman30ott6


I think you can add the House & Senate onto your list of controllers,

i wouldn't say the esteemed Senators are all 'wise elders'...

they too are driven by hubris, self preservation, and are not beyond being duped with the distractions of the theatrical... which is what is being played out with the 'rescue the mortgages- & we'll save the lenders ' ploy

and the rationalizations that we need to 'throw money at the problem first...
and we'll sort out the recriminations later' approach

Total cop-out & BS by both the house & senate !


i really did enjoy the 10 minute oratory by
Senator Bernie Sanders, 'I'-Vermont around 5:00 to 5:30 pm ET ?from the floor. He spelled it out clearly--> and if i happen on a you-tube video of that moment, I will burn a copy for posterity & my enjoyment


thanks burdman30ott6