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Author: telegraph Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 744474  
Subject: Re: Here We Go Again: CRA Back From the Dead Date: 1/25/2013 8:31 AM
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CC:"They're high because the owners are walking away from their worthless underwater properties, not because of the underwriting guidelines that granted the owners loans to begin with. "

Same thing.

The bank loses its shirt.

The bank didn't make the loans go down in value. That was probably obvious from day one that if you invest in over priced property, the bubble will bursts and you'll get left holding what's left.....

No sane bank would be loaning money in these areas.

And few properties are 'worthless'. they are simply 'worth less'.

Obviously, the underwriting guidelines failed too, since many people who are underwater didn't walk away. They toughed it out.

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