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Subprime Losses Continue to Squeeze Citizens, Banks

Published 11/20/07 Economy In Crisis - Print Article
E-mail - editor@economyincisis.org

The subprime debacle continues to squeeze consumers, banks and credit availability around the nation. Here are some of the latest statistics emerging from the ongoing crisis:


Myles Zyblock, chief institutional strategist at RBC Dominion Securities says:

  • More than 20% of the value of U.S. mortgage loans made in 2005 and 2006 is linked directly to subprime situations, and another 19% is linked to alt-A loan situations. Both are types of loans made to those who don't qualify for prime mortgages.

  • 16% of subprime mortgages are now past due

  • Right now is the worst case of national price deflation in the U.S. housing market in at least 40 years

  • Inventories of unsold houses are nearing multi-decade highs

Other recent subprime figures from around the web:


  • Investment banks expect $200bn-$500 billion in subprime losses and huge losses in credit card loans, and other debt related markets -Financial Times

  • Goldman Sachs estimates credit available to consumers may be reduced by $2 trillion, due to banks losing money on subprime investments -USA Today

  • Citigroup warns of 11 Million dollar loss Wachovia, Bank of America, JP Morgan Chase all warn of more upcoming losses

    • -The Toronto Star


As always, please share your reactions below.


Front Page Photo by woodleywonderworks- Flickr © Some rights reserved

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