according to what the banks say they lost their money in subprime by when they sold the house on defaulters the price had droped and they made a loss totalying $250 billion globally.. hence the falling house prices being what caused their loss.
Now oolala according to you house prices fell after subprime which means the banks are wrong? So can I ask, how did the banks lose all this money in subprime to create the subprime monster?
Also everyone knew the loans were not serviceable. The banks even advertised them on TV as NINJA loans (No Incom No Job or Assett) they were even happily lending people $200K at 14% interest which costs $35K to maintain when they were only earning around $30K, as i said the banks saw this as safe because they would just sell their house on them and take their money back.
So if falling house prices wasnt the cause, and is the effect of subprime.. how did the banks lose $250 Billion in subprime before house prices fell?
Really looking forward to your answer?
ASX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)