Wednesday, November 23, 2011

How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?

To pay for their expenses. If they sell large quantities of their investments and you have money in the stock market in those securities that they have to sell, won't your stocks lose value rather quickly? With all these companies claiming subprime losses, is it a wonder to you that people stay invested at all?





The uncertainty is terrible.How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?
Any time soon according to what I'm hearing here in London.





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Here in UK the value of properties is far greater than the outstanding money owed on mortgages. People should realise this and stop worrying. Major mortgage brokers are already talking property prices up here in UK.





Where I live in London, the economy is separate from the rest of UK and we're just booming. Just don't even think of asking why, who cares, just grab your share while it's going. London since Roman times has always been a law unto itself. Mad and dangerous but wonderful too.How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?
uncertainty indeed. Ulimately they do not need to sell additional capital if their capital base is firm. The problem is that the write downs keep depleting their capital and they need to shore them up to continue making investments. Remember that a write down (mark to market) is not a cashflow event. The sale for a loss is a real event. tba.

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