Curiousity - Where did the subprime losses go to?

T

trueliquidity

For those sellers who sold houses during the beginning of the sub prime mess, where did they take the money to? Assuming the money hasnt just vaporized, its probably spread out through the economy and then ended up in China, along with billions of other US dollars. At least thats my guess.
 
i think the subprime losses were profits for those who

1. created the bad loans first hand and package these loans off to willing buyers...

2. or anyone who bought these bad loans and re-package them off to someone else

3. or anyone who bought these re-package bad loans and re-re-package them off to someone else....

and so on.....

so the greatest fool ended up with the losses
 
The middle men. Commissions, fees, salaries to people who works in this field.
Those who bought early way before the peak, and sold to go into renting.
The government for RE taxes.
 
Quote from trueliquidity:

For those sellers who sold houses during the beginning of the sub prime mess, where did they take the money to? Assuming the money hasnt just vaporized, its probably spread out through the economy and then ended up in China, along with billions of other US dollars. At least thats my guess.
More...

Stock market and now since that is going down it will go back into real estate.

John
 
Many of them bought more houses!

I saw the absoloute madness and cashed out August of 2005.

You know, with the decline in the dollar and inflation I don't feel like I made so much money anymore.

Now if anyone cashed out at the top and put it all in emerging markets, gold, and Euros you are my hero.
 
Someone's loss doesn't become someone else's gain.

If we must gain by having someone else to lose, then the Earth's combined economy has never grown... unless if it has some trade surplus with Mars.

Overall wealth is decided by efficiency.
 
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