scariest Chart EVER: Loss Severity, Subprime First-Lien

[hegemony]

http://www.aleablog.com/scariest-chart-eve...ime-first-lien/

[hegemony]

ttt

[Jen23514]

ttt

[MB82x]

I don't claim to be an expert on these things - but isn't this not all bad news?

 

If a bank is selling a house at 70% loss - bad for them, and bad for the person getting foreclosed on... but isn't it GREAT news for lower-middle class families who can get into a nice home for a great price?

 

I hope to have $12,000 in the bank by the end of this year, and $25,000-30,000 by the end of next year... I'd personally LOVE to get into a house for 30 cents on the dollar...

[hegemony]

I don't claim to be an expert on these things - but isn't this not all bad news?

 

If a bank is selling a house at 70% loss - bad for them, and bad for the person getting foreclosed on... but isn't it GREAT news for lower-middle class families who can get into a nice home for a great price?

 

I hope to have $12,000 in the bank by the end of this year, and $25,000-30,000 by the end of next year... I'd personally LOVE to get into a house for 30 cents on the dollar...

in the micro-economy of the lower-middle class family you cite, yes it is good.

 

in the macro-economy not so much.