How much subprime losses remain to be written-down?
- Thread starter crgarcia
- Start date
Yeah it will be about $10 trillion for the current debt, add in this years deficit of $450 million and the future unfunded SSA obligations of $36 trillion. It's upwards of $46 trillion.
All those foreign suckers who have lent to the USA and continue to do so are actually lending to a subprime borrower.
THE USA IS TECHNICALLY BANKRUPT.
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<tr><td><a href="http://zfacts.com/p/461.html" id='zF05' style="color:black;font-size:12px">The Gross National Debt</a></td></tr>
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The next subprime event that will make history.
http://www.ssa.gov/qa.htm
In 2005, unfunded Social Security and Medicare obligations totaled $36 trillion. When public debt and other traditional federal liabilities are included, the total U.S. federal debt is over $46 trillion.
http://www.heritage.org/Research/Budget/em1004.cfm
All those foreign suckers who have lent to the USA and continue to do so are actually lending to a subprime borrower.
THE USA IS TECHNICALLY BANKRUPT.
<!-- start zFacts Debt Gizmo -->
<table id="zDebtBox">
<tr><td><script type="text/javascript" src="http://www.zfacts.com/giz/G05/debt.js"></script></td></tr>
<tr><td><a href="http://zfacts.com/p/461.html" id='zF05' style="color:black;font-size:12px">The Gross National Debt</a></td></tr>
</table>
<!-- end gizmo -->
The next subprime event that will make history.
http://www.ssa.gov/qa.htm
In 2005, unfunded Social Security and Medicare obligations totaled $36 trillion. When public debt and other traditional federal liabilities are included, the total U.S. federal debt is over $46 trillion.
http://www.heritage.org/Research/Budget/em1004.cfm
From USA banks the write down ( provision only, not actual write offs) is about $140 BN. In accounting you provide for a loss via provision, after its confirmed as BAD you write it off as a BAD DEBT. BAD is when there is foreclosure or bankruptcy by the debtor.
This guy says provisions could blossom to $1 Trillion
http://rs.rgemonitor.com/blog/roubini/240131
This guy says USA investment houses stopped buy mortgage junk around 2003, and most of the paper is now held by Asian or Arab banks.
http://www.financialsense.com/editorials/duarte/2008/0128.html
My question, is how much of these mortgages packages where allowed to be borrowed on 10 to 1, thats 10x times the orginal value of the sub prime/Alt A/Prime mortgage pools. I have heard 10x is light, some as high as 50x. Yikes !!!
This guy says provisions could blossom to $1 Trillion
http://rs.rgemonitor.com/blog/roubini/240131
This guy says USA investment houses stopped buy mortgage junk around 2003, and most of the paper is now held by Asian or Arab banks.
http://www.financialsense.com/editorials/duarte/2008/0128.html
My question, is how much of these mortgages packages where allowed to be borrowed on 10 to 1, thats 10x times the orginal value of the sub prime/Alt A/Prime mortgage pools. I have heard 10x is light, some as high as 50x. Yikes !!!
These are not losses but accounting entries for tax purposes, reducing income.
Real estate mortgage and collateral ( property ) doesn't not disappears. Its a tangible commodity.
Assuming the "value" is rising again ( for whatsoever reason )...implications for balance sheet accounting / statements of profit and loss ?
46 Trillion over 30 to 75 years....in 2008 dollars..
As long as the GDP grows 3-5% a year we are ok.
Just like signing a 10 year 100 million $ sports contract. Seems like a lot but by the end of the term it is a bargin...as long as there is revenue growth......this is why owners have no problem doing this
A trillion dollars in year 2060 will be nothing...by then GDP will be over 100 trillion. Tax revenue is about 18% of GDP. In year 2060 tax receipts will be 20 trillion dollars.
That would betrue if we weren't continually addidng to the debt.