ajtj99's Market Pulse

[osprey]

<<Hi Osprey, (Incidently, I have an Osprey nest in my backyard)>

You must have a big back yard and live near water. Where I used to live back in the Dark Ages, we had a nest near our house. Bird watchers used to drive for miles to take pictures of the birds in their nest. Where I live now, we have lots of Golden Eagles in the summer. I've seen as many as 5 at one time.

<<You mention when a mortgage goes default the money is gone, the person that sold the house in the first place has the money with the exception of bank fees etc.>>

Yes, if someone buys a house for 300K and sells it for 500K, they made 200K. If the last owner defaults and the bank ends up with the house and sells it for 300k (the current situation), the bank lost 200K. Essentially there is a winner and a loser and no net gain in wealth.

Edit: If you take 500K as the peak wealth figure, 200K was vaporized.