Comments on: Breaking a Barrier to Lending http://www.ritholtz.com/blog/2009/02/breaking-a-barrier-to-lending/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 22:17:29 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: pmorrisonfl http://www.ritholtz.com/blog/2009/02/breaking-a-barrier-to-lending/comment-page-1/#comment-147247 pmorrisonfl Fri, 20 Feb 2009 17:37:57 +0000 http://www.ritholtz.com/blog/?p=19571#comment-147247 Looking at the volume chart, right... Not counting 2001-2007, it looks like the average loaned amount is ~500B (.5T). If we take the loans made during 2001-2007, it looks like a total of ~7 Trillion in 'surplus' loans (loans beyond the average amount). I bet not every single person will default... but Roubini's 3.6T estimate of losses may be optomistic. Looking at the volume chart, right…

Not counting 2001-2007, it looks like the average loaned amount is ~500B (.5T).

If we take the loans made during 2001-2007, it looks like a total of ~7 Trillion in ‘surplus’ loans (loans beyond the average amount).

I bet not every single person will default… but Roubini’s 3.6T estimate of losses may be optomistic.

]]> By: ArtemL http://www.ritholtz.com/blog/2009/02/breaking-a-barrier-to-lending/comment-page-1/#comment-147243 ArtemL Fri, 20 Feb 2009 17:29:47 +0000 http://www.ritholtz.com/blog/?p=19571#comment-147243 May I suggest a new security. Instead of ABS/MBS we will now have GBS (Government-Backed security ;) and have ourselves a 'brand' (pun intended) new bubble! I'm sure the volume chart of GBS will resemble that of ABS/MBS displayed on the right of the NYT image (but starting in 2008 instead of 1996) May I suggest a new security. Instead of ABS/MBS we will now have GBS (Government-Backed security ;) and have ourselves a ‘brand’ (pun intended) new bubble!

I’m sure the volume chart of GBS will resemble that of ABS/MBS displayed on the right of the NYT image (but starting in 2008 instead of 1996)

]]> By: wally http://www.ritholtz.com/blog/2009/02/breaking-a-barrier-to-lending/comment-page-1/#comment-147241 wally Fri, 20 Feb 2009 17:28:31 +0000 http://www.ritholtz.com/blog/?p=19571#comment-147241 Could anybody possibly be any more ill-informed than the guy who proposed this? Let's start with the very first words: "The banks have come to depend..." Stop. So what????? Could anybody possibly be any more ill-informed than the guy who proposed this?

Let’s start with the very first words: “The banks have come to depend…”
Stop.

So what?????

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