Subprime Mortgages History
June 7th, 2009
Subprime Mortgages History
Question: Towering losses at Merrill Lynch stir credit crisis fears…they bet wrong and we pay?
Merrill took a $14.1 billion write-down in the fourth quarter on bad subprime mortgage bets plus other charges that have forced the sale of pieces of the company to foreign investors to raise capital. The brokerage reported a fourth-quarter net loss of $9.8 billion, the largest in the company’s history, a figure Chief Executive John Thain called “clearly unacceptable.” Analysts expected Merrill’s write-down to land anywhere between $10 billion and $15 billion. For the year, Merrill’s subprime mortgage-related losses totaled nearly $23 billion.
So the bottom line is an investment power house bet wrong is losing significant profit and we the avergae jane and joe tax payer are going to have to bail them out? If I am reading htis wrong please correct me. I am sick of this. When I bet wrong I have to go out and work my butt off to make back the money…NO ONE IS HELPING ME! Why should our government be so concerned to help a faceless corporation that is only about one thing…greed.
Answer: buttermilk biscuits
20. Guest Lecture by Stephen Schwarzman
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