Irresponsible Home Buyers to Cost $600 Billion!
Just before you start defending your risky real estate ventures by saying that “it doesn’t hurt anyone,” think again. A new report puts the cost of irresponsible real estate deals at up to $600 billion!
FRANKFURT (Reuters) - The financial market crisis could cause losses of up to $600 billion at banks and other financial institutions worldwide, a German magazine reported on Saturday, citing an internal report by German financial watchdog BaFin. The $600 billion figure represents a worst-case scenario for losses linked to the financial turmoil sparked by the meltdown in the U.S. subprime mortgage market, Der Spiegel magazine said in a story released in advance of publication on Monday. “Based on current knowledge and the market situation, we believe $430 billion is more likely,” the magazine quoted what it said was a 16-page report by BaFin as saying. BaFin calculated that banks had already acknowledged about $295 billion in losses, of which Germany accounted for around 10 percent, the magazine said. Extrapolating from this percentage, German banks could suffer $60 billion in losses in the worst case and $43 billion in the more favorable scenario, the magazine added. However, the magazine also said BaFin cited the risk that the financial crisis could spread beyond the banking sector to affect hedge funds, insurance companies, pension funds and even some non-financial companies.
Who then should bear the brunt of this expense so irresponsible people can get off without paying a dime? Us. I mean people who pay taxes to the oppressive American Federal Government. That’s who. Makes me sick.
