Jul
11
Stephan asked:
The government is shelling out 700 billion dollars to buy the bad loans that are putting the big banks in danger. We are told that the bad loans consist mainly of unpaid mortgages (sub-primes etc). So the government is effectively buying 700 billion dollars of housing. If we estimate the price of one house between 100k$ and 350k$, then the government should be acquiring 2 to 7 million houses. That is, unless we are being misled and that these bad loans were made up of a lot more than just home mortgages…
TONY
The government is shelling out 700 billion dollars to buy the bad loans that are putting the big banks in danger. We are told that the bad loans consist mainly of unpaid mortgages (sub-primes etc). So the government is effectively buying 700 billion dollars of housing. If we estimate the price of one house between 100k$ and 350k$, then the government should be acquiring 2 to 7 million houses. That is, unless we are being misled and that these bad loans were made up of a lot more than just home mortgages…
TONY