Comments on: US Subprime Mortgage Crisis http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis Value Investing Strategies of Warren Buffett and Benjamin Graham Fri, 21 Nov 2008 13:03:15 +0000 http://wordpress.org/?v=2.2 By: Martin Lee http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-99 Martin Lee Sun, 12 Aug 2007 06:13:46 +0000 http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-99 Hi Art Hedge, Thanks for pointing out the error and sharing the article. That typo error has been corrected. Hi Art Hedge,
Thanks for pointing out the error and sharing the article. That typo error has been corrected.

]]> By: Art Hedge http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-97 Art Hedge Sat, 11 Aug 2007 20:24:14 +0000 http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-97 It's Bear Stearns, not Sterns as you write. The article shows the same level of accuracy and depth. Bear Stearns is a poorly managed company that may have found a dishonest way to pass part of their losses to investors. Tthere ought to be a law to curb these Ponzi schemes. Anyway, the whole thing is much better narrated here: http://www.businessweek.com/bwdaily/dnflash/content/jun2007/db20070612_748264.htm It’s Bear Stearns, not Sterns as you write. The article shows the same level of accuracy and depth. Bear Stearns is a poorly managed company that may have found a dishonest way to pass part of their losses to investors.
Tthere ought to be a law to curb these Ponzi schemes.

Anyway, the whole thing is much better narrated here: http://www.businessweek.com/bwdaily/dnflash/content/jun2007/db20070612_748264.htm

]]> By: Martin Lee http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-96 Martin Lee Sat, 11 Aug 2007 05:19:41 +0000 http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-96 Hi Yeo, The problem is when housing prices drop (and it has dropped quite a bit), the equity left in the house is no longer sufficient to pay for the loans. When the borrowers are unable to pay and the loan has to be defaulted, the lenders will be unable to recover their money. Multiply that by 5 million people and that's a lot of money. The bigger problem is the leverage employed by certain hedge funds. Hi Yeo,

The problem is when housing prices drop (and it has dropped quite a bit), the equity left in the house is no longer sufficient to pay for the loans.

When the borrowers are unable to pay and the loan has to be defaulted, the lenders will be unable to recover their money.

Multiply that by 5 million people and that’s a lot of money.

The bigger problem is the leverage employed by certain hedge funds.

]]> By: Yeo AH http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-95 Yeo AH Sat, 11 Aug 2007 05:18:38 +0000 http://www.intelligentinvestorclub.com/derivatives/us-subprime-mortgage-crisis#comment-95 Talking about the Subprime Mortgage crisis. Although the borrowers cannot pay the loans, how about the properties that are mortgaged to obtain the loans? The lenders will still have the properties which can be realised maybe for lesser than the loan borrowed. Talking about the Subprime Mortgage crisis. Although the borrowers cannot pay the loans, how about the properties that are mortgaged to obtain the loans? The lenders will still have the properties which can be realised maybe for lesser than the loan borrowed.

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