Overall Subprime losses increasing
So how much has really been lost in the securities market backed up by subprime mortgages? In a January 29th, 2008 Reuters article, analysts at Dresdner Kleinworth estimate these losses at $310 billion.Utilizing the ABX Index, which reflects prices of subprime mortgages originated in 2006 and 2007, Dresdner suggests market losses of just under 30% of all subrimes issued in those 2 years.By increasing its total estimate to $310 billion in losses, Dresdner is increasing its earlier estimate of $130 billion by another $180 billion. One has to wonder how many more revisions we’ll see to this number in the next few years. The second shoe is yet to drop in this financuial tragedy. Â
