Tuesday, October 30, 2007

Just How Much Sub Prime Garbage Was There?

Trillions and trillions of dollars!

Again, because of the sheer size of this stupidity I will find it hard to believe the economy doesn't at least slow down drastically.

1 comment:

Anonymous said...

The dislocation could have significant impact. However, it is important to remember that a loan does not by itself create wealth - it is a temporary transfer of possession. The failure to repay a loan does not destroy wealth - it is a transfer of that wealth.

So the subprime meltdown is a big wealth transfer from lenders/investors to borrowers (or to the parties to whom they spent the borrowed funds). The wealth is still out there somewhere.