$4 Trillion In Opportunity Costs
When its all said and done... U.S home prices may have lost a third of their value,
high-yield bond valuations will hit levels close to those seen during the last recession,
and what may amount to $1 trillion of Wall Street losses may translate into almost $4 trillion of lost access to capital.
That's the view of top credit analysts, who say a U.S. housing decline, will likely last another two years
as a wider group of consumers, including prime borrowers, feel the pinch from a tightening of credit.
Peter Acciavatti, a credit analyst and managing director at JP Morgan Securities said:
Home prices may fall as much as 30% from their peak in 2006 and not hit bottom until 2010,
"The housing correction is in a down phase. We're now going through a phase of deleveraging and the pulling out of easy money."
Glenn Costello, a Fitch Ratings managing director forecast more defaults and delinquencies for U.S. home mortgages,
and said the highest default rates are coming from recent mortgages originating in the last few years.
"There are a lot more mortgage defaults to come. We see an ongoing high level of default."
The Nattering One muses... Savvy? Wall Street Brokers, Bankers and Real Estate Investors lose access to $4 Trillion in capital and its potential...
yet have the nerve to plea... Can you spare a dime so I can lose some more?
Our compassionate answer (same one you give an addict): Hey! Stupid! Do us all a big favor, go crawl in a corner, f*ck yourself and die.
Hattip to MSN Money.
high-yield bond valuations will hit levels close to those seen during the last recession,
and what may amount to $1 trillion of Wall Street losses may translate into almost $4 trillion of lost access to capital.
That's the view of top credit analysts, who say a U.S. housing decline, will likely last another two years
as a wider group of consumers, including prime borrowers, feel the pinch from a tightening of credit.
Peter Acciavatti, a credit analyst and managing director at JP Morgan Securities said:
Home prices may fall as much as 30% from their peak in 2006 and not hit bottom until 2010,
"The housing correction is in a down phase. We're now going through a phase of deleveraging and the pulling out of easy money."
Glenn Costello, a Fitch Ratings managing director forecast more defaults and delinquencies for U.S. home mortgages,
and said the highest default rates are coming from recent mortgages originating in the last few years.
"There are a lot more mortgage defaults to come. We see an ongoing high level of default."
The Nattering One muses... Savvy? Wall Street Brokers, Bankers and Real Estate Investors lose access to $4 Trillion in capital and its potential...
yet have the nerve to plea... Can you spare a dime so I can lose some more?
Our compassionate answer (same one you give an addict): Hey! Stupid! Do us all a big favor, go crawl in a corner, f*ck yourself and die.
Hattip to MSN Money.
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