So far the number of banks to go under has been very small, but one expert says hundreds more will fail.
Economist and New York University Professor Nouriel Roubini told Barron's that the real estate recession will last for at least 18 months and help kill off hundreds of banks.
The banks so far have only written down their subprime loans, Roubini said. They still have mounting consumer-credit losses, and hundreds of millions of dollars outstanding in home-equity loans that could be worth zero.
Talking about government regulators, Professor Roubini said "They have swapped U.S. Treasury bonds for toxic securities, it is privatizing the gains and profits, and socializing the losses as usual. This is socialism for Wall Street and the rich." San Diego California real estate agents
In the 70’s people had equity in their homes and credit card debt was not maxed out by as many as it is today it was a much different time, so much so it’s very scary today. Acne Medical Treatments
It’s simple. House prices have to come down to pre-bubble level. It’s hard to take for a lot of folks. But that’s reality. FL Bail Bondsman
I believe a lot of people who purchased with subprime loans and were not really qualified have to accept the inevitable consequences and perhaps build up their savings and credit while renting until the next purchase opportunity. San Diego Medical Research Studies
Real estate speculators should not be bailed out by the government. San Diego Cosmetic Doctor
What were the government regulators doing while banks and mortgage brokers were issuing these subprime loans? Houston TX Lawyer
Seems there should have been more government regulation and tighter qualification for subprime mortgages in order to prevent what we’re now facing. San Diego Implant Dentist
Good job! Thanks