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Originally Posted by unclebilly
i just don't understand how banks can take these huge write downs.
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The banks don't have a say, and they can't absorb the losses. This is the result of credit expansion gone wild.
Quote:
Originally Posted by ruf-porsche
Take a moment to think about the family that use to live there, but lost their dream house because of the economy.
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So your solution would be??? Vultures allow the carcass to be eliminated. Vultures take distressed assets and turn them into performing assets. Vultures help banks reduce non-performing inventory, which eventually allows banks to extend credit. Vultures have access to funds and credit that are not available to most individuals today. The result is that asset pricing hits a bottom as valuations hit fundamental levels. Without vultures, this bottoming process would take longer, if at all.