The US Fed may try to bail out financial institutions when...

The US Fed may try to bail out financial institutions when future subprime loans default - support them actually i guess. the prob is most of thesubprime debt is owed by people who cant or wont repay the debt. In which case they walk away from their property and rent and the property will be sold (at a firesale discount possibly) to liquiadate the asset and return money to the financial institutuion that is owed the loan money. I always thought the lending body was insured against losses in case of loan default - maybe jsut in australia? - in any case if the number of defaults rises then the property value in US will fall and most likely pull down other asset prices with it ie shares, art , consumables. The flow on effects globally are yet to be determined. Id say we are looking at a few months bounce upwards and by october most people will be sheeting themselves
cheers