So far, the sub prime crisis has had a limited direct impact on Latin America s mortgage markets.

The housing recession the worst in US history and worsening every day will eventually see house prices fall by more than 20 , with millions of Americans losing their homes.

Hence, the Fed s intervention in the housing market is really an intervention in the government bond market the purported switch from buying mortgages to buying government bonds is of little significance.

The Right Weights for Mortgage Risks

Occupy the Mortgage Lenders

Losses are spreading from sub prime to near prime and prime mortgages, commercial mortgages, and unsecured consumer credit (credit cards, auto loans, student loans).

Mortgage debts, too, must be written down.

After the subprime crisis erupted, mortgage and consumer debt was paid down by households either with their savings or by default.

The impact of this lost European perspective became clear in the autumn of 2008 when, in the aftermath of the sub prime crisis and the failure of Lehman Brothers, Chancellor Angela Merkel s first impulse was nationalistic and wholly anti European.

Mortgages became more widely available.

Mortgage brokers were happy to get in on the act.

It was called securitized mortgages.

Unlike virtually every other country, US residential mortgages are effectively no recourse loans.

This creates a strong incentive to default, because mortgages in the US are effectively non recourse loans the creditor may take the property if the borrower doesn t pay, but cannot take other assets or a portion of wage income.

Its effect is almost as important as that of smoking.

It has also referred to a desire to avoid feared bandwagon or underdog effects on the electorate.

The Snowden Effect

Indeed, the foreclosure rate is increasing.

The problem was not just sub prime mortgages.

The claimant sought from the Court an order of foreclosure.

Moreover, the US housing market appears to be stabilizing....Overall, the US mortgage market has remained resilient, although the sub prime segment has deteriorated a bit more rapidly than had been expected.

a rapid reduction of insolvent households debt burden, preceded by a temporary freeze on all foreclosures

In the US, reviving the credit markets requires stopping the mortgage defaults driven by negative equity.

But mortgage markets remain underdeveloped in most emerging economies.

What is needed is a quick write down of the value of the mortgages.

In the fourth act, the real estate bubble will burst.

Its members could not agree even on how to define subprime mortgages and calculate how many such mortgages there were in the United States at the time of the crisis.

Thus, although delinquency rates have risen slightly in Mexico since the mortgage market was created in 2003, only about 5 of mortgages are between 31 and 60 days late. Only 2 are between 61 and 90 days late.

Separating the budget s effects on the economy from those of the economy on the budget is tricky.

The state is an epicenter of the housing bust and the foreclosure crisis.

Around sixty sub prime lenders have already gone bankrupt.

Some limited previous experience with mortgage modifications is not encouraging.

You shall stand outside, and the man to whom you do lend shall bring forth the pledge outside to you.

Thou shalt stand abroad, and the man to whom thou dost lend shall bring out the pledge abroad unto thee.

Set here the level of the effect.

Top officials draw allowances in US dollars ranging from 10500 to 12500, while their salaries are 55 60.

Given the large number of negative equity homeowners, there is a risk that defaults and foreclosures will continue.

Wall Street has polluted the economy with toxic mortgages.

Sub prime mortgages made the American dream come true.

One place to start is the tax deduction for interest payments on home mortgages.

The sub prime crisis has exposed serious problems that we must address.

It has been used as a surgical material since the 1940s, and has been shown to have a strong anti adhesive effect.

In the old days, when borrowers found it impossible to make their payments, mortgages would be restructured foreclosures were bad for both the borrower and the lender.

Patrick Chappatte The power of cartoons

CA So, what was the impact of that?