How bad is the subprime problem....what is the truth ??

Re****ts on the real situation is hard to come by....I dug up a re****t
in Bankrate.com by Marcie Geffner pubished two week ago.

She said "2.2 millions house owners recieved foreclosure notices in
2007". Just how big is
the mortgage loans on these houses.  ( CNN re****ted that in California
alone, 900,000 homes have been foreclosed.). Based on 2 million
houses, let's do a simple sum.

At the height of the boom, houses were selling between $300,000 to
over $1 millions dollars..
For simplicity, let's take the average price as $500,000 each (very
conservative)

2 millions houses at $500,000 each ..amounts to 1 TRILLION dollars. It
means that 1 trillion dollars worth of mortgage loans is at risk of
default.

This is the size of the subprime problem...1 trillion dollars.

So far, the investment banks has written off less than 120
billions....that is a tenth of the subprime loans that is going bad.

The banks will have to written off very much more in the near
future.....a sobering thought.

http://biz.yahoo.com/brn/080221/24636.html?.v=1&.pf=loans