Bill GreenTHEY CAN'T TELL US HOW BAD IT'S GOING TO BE
September 30th 2008 01:15
Why they can't tell us how bad it's going to be. They don't want to do the speculations. The reason they think they can help with a $billion dollar bait out (actually much more if you take into account Freddie Mac etc.) is that they imagine all those subprime houses are worth something now they've been deserted by the purchasers.
But why would they be worth anything? They are not great buying. The selling was supported by enormous, lying, advertising campaigns and now those shelters will go the way of all those other developments that have been hit by economic downturn in the past. First they remain slum housing, or even better, shelter for squatters. This will keep prices down for three or four decades.
But down by how much? First you have to take into account that they won't be earning anything but family pocketmoney for most of that time. But then people looking for work will like to remain close to where they imagine work may be and shun such estates that are miles from the action (if any).
So, is that down 75% OR 85%? YOU CAN BET THAT THOSE BUDGETING FOR THE BAIL OUT HAVE NOT GONE BELOW 60% OF THE ORIGINAL PRICE. What a nice surprise we may be in for. Perhaps a bailout of $6 to$10 trillion is in order? Don't attempt to follow the math here? Be like the US government, keep your head in the sand.
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Comment by Kleonaptra
Kalikapsychosis
Comment by Bill Green
Talking Headlines
I respect that. A few CEO's need you on their tail on this one.