[L,TOWM]

We are not even close to through with the residential losses, yet. What few people realize is that the bailouts so far accounted for investment and derivative write downs. With 12% of RE mortgages delinquent or in foreclosure, this will be Round 2 and then be followed closely by the Commercial defaults.

[Oatka]

We are not even close to through with the residential losses, yet.

Spot On. Look what is coming down the pike (sorry for the HUGE size - gotta shrink it):

[HamiltonJay]

Yep,

I remember for years telling folks the size of this thing would be measured in TRILLIONS, it was going to make the S&L look like nothing and folks laughed at me. There is a hell of a lot more Residential coming, and commercial hasn’t even begun to hit hard. Anyone thinks we are ANYWHERE near to being done with this mess is fooling themselves.

Not to mention the policies and actions of the Fed and Government are going to just drag out and enlarge the problem. Refusing to let them fail, is going to cost us all dearly. Yes if they failed the mess would be big, but the pain would be quick as new players and existing players who didn’t make the mistakes picked up the pieces and arose stronger.. instead we subsidized the fools who made the mess keeping them around and assuring the mess will not get cleaned up quickly, and mostly like never.