...should be...? ...smaller.
This was a letter printed in the Irish Times newspaper - not mine, but I thought is was worthy of a gloabl forum. I know it is simplistic, but think it is a very interesting question.
"Madam, - A reasonable estimate - based on population, family sizes, and home-ownership ratios — suggests there are fewer than 75 million mortgages in the US. Let's assume, conservatively, half of them are "sub prime" and that 80 per cent of those are in trouble.
That means about 30 million mortgages in trouble. Further assume that sub-prime mortgages average about $300,000 and it seems the total amount in danger of not being paid back is about $9 billion - assuming the houses, on which the mortgages are based, are worthless.
Why are governments all over the world doling out hundreds of billions to various financial institutions when $9 billion given directly to the troubled home owners would have eliminated the sub prime crisis which supposedly caused all this in the first place?"
This was a letter printed in the Irish Times newspaper - not mine, but I thought is was worthy of a gloabl forum. I know it is simplistic, but think it is a very interesting question.
"Madam, - A reasonable estimate - based on population, family sizes, and home-ownership ratios — suggests there are fewer than 75 million mortgages in the US. Let's assume, conservatively, half of them are "sub prime" and that 80 per cent of those are in trouble.
That means about 30 million mortgages in trouble. Further assume that sub-prime mortgages average about $300,000 and it seems the total amount in danger of not being paid back is about $9 billion - assuming the houses, on which the mortgages are based, are worthless.
Why are governments all over the world doling out hundreds of billions to various financial institutions when $9 billion given directly to the troubled home owners would have eliminated the sub prime crisis which supposedly caused all this in the first place?"