Upside Down Mortgage

Total Subprime Mortgages

Question: How could 1.3 trillion dollars (total) worth of subprime mortgages bring down the US and global economy?

Even if they ALL failed, which they did not, it is not possible for that amount to cause a major recession or an imminent depression.

1.3 Trillion is simply too small of a percentage of the total GDP and less than 10% of total outstanding mortgages. Why do so many people think that the problems we are facing is because of simple homeowners that bought a bigger house than they could afford? Makes no sense.

Of the total mortgages out there many are of course commercial properties. They are defaulting too and have a higher value than all of the house mortgages.

google the wiki to start. Also use their resource list to get to government sites that can give you more particular facts.

PS I just asked a Q on this subject and was appalled at how uninformed people are about the causes of this world wide collapse of our financial systems. I would like to hear from those with an understanding of the intricate web that is taking us down.
PS I do know....

Answer: You make a fair point here. I think there is more to the collapse than failed mortgages. I think the problem is that a hell of a lot owe one hell of a lot of money, and not just on mortgages.

Babylonaholics - 5 of 5 (Plynth feat. Fukyiro.Pinion)

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