Something with all the losses in the financial ind. doesn't make sense to me.

napi21

(1000+ posts) Send PM | Profile | Ignore

Thu May-08-08 04:48 AM
Original message

Something with all the losses in the financial ind. doesn't make sense to me.

I just heard that UBS taking another $19 BILLION writedown because of bad home loans. I understand there were millions of bad home loans, but it seems the banks are writing them all off as unrecoverable, but that's not true. Eventually those homes WILL be sold, and I believe the banks will recover at least 60% to 70% of their investment. Are they recording the total loss NOW when the entire banking industry is in a mess, and planning on showing a very good picture in the future when they do recover a high % of their losses?

Printer Friendly | Permalink | | Top

izzie

(1000+ posts) Send PM | Profile | Ignore

Thu May-08-08 04:53 AM
Response to Original message

1. Not many banks are ever out of money. Money is their business.

I am sure the tax payers are going to pick up the whole mess.

Printer Friendly | Permalink | | Top

MannyGoldstein

(1000+ posts) Send PM | Profile | Ignore

Thu May-08-08 06:19 AM
Response to Original message

2. The Writedown Is Based On A *Guess* As To What They'll Get Back

The loans are for far more than the writedown amount. So they're doing what you suggest.

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Sat May 04th 2024, 12:32 AM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.