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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

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