Some people are fully aware of this but for those that aren't here's the answer. I'm tired of seeing all of these reports everywhere saying that the US housing market was the cause of the global financial collapse. So to prove to my belief and to explain to those who don't understand I did a little number crunching. I'm not a reporter nor do I want to be so I'll just point out a few of my findings and let you do your own homework.
There are roughly 90,000,000 homes in the US. An estimated 10% of all homes are paid in full. According to calculatedriskblog.com the "Fed's estimate of household real estate assets at the end of 2006: $20.6 Trillion, we can estimate the total dollar value of houses with and without mortgages." So if we subtract the 10% paid in full then we come to $18.4 Trillion. If my math is correct (not a mathematician either) this works out to an average loan amount of roughly $204,444.
It's estimated that there are going to be somewhere along the lines of 3.2 million foreclosure filings this year. Based on our $204,444 average loan amount that comes to $654,220,800,000, around the initial $700 billion requested. Based on these figures the $700 billion would pay for every single home estimated to have "foreclosure filing" in full for 08. Now you would think, ok, so they aren't lying to us. But that's not the case. First and foremost a large number of these homes are auctioned off, sold on short sales, etc, etc. So the amount wouldn't be anywhere near the full amount.
Then you have to add in the factor of fractional banking which is where Bloomberg arrives at it's $7.7 trillion. According to Bloomberg the bailout now actually currently stands at $8.5 Trillion but let's go with the initial report from them of $7.7 Trillion. (They have since deleted the articles so I can't provide the source) Imagine that, hiding the truth. If you need confirmation all you have to do is search "bloomberg $7.7 trillion" or $8.5 trillion and you'll find many reputable sources quoting them. I did find one article on Bloomberg saying it again buried deep in another article but anyway lets move on. The Fed has only tapped half of the initial funds. So that would come to 3.85 trillion.
Now we have to ask ourselves where has the other $3.2+ trillion gone to? Bloomberg also mentioned trillions disappearing and has filed a suit regarding it. So why do they really need the remainder. The only assumption one can come to is Credit Default Swaps aka Derivatives and the pockets of already very rich people. Lets also not forget all of the money disappearing from everyone's 401k's, retirement and investment accounts but I guess that's another topic.
If you need further education on how fractional banking works I suggest these two videos.
Money As Debt
For the advanced course
The Money Masters
There are roughly 90,000,000 homes in the US. An estimated 10% of all homes are paid in full. According to calculatedriskblog.com the "Fed's estimate of household real estate assets at the end of 2006: $20.6 Trillion, we can estimate the total dollar value of houses with and without mortgages." So if we subtract the 10% paid in full then we come to $18.4 Trillion. If my math is correct (not a mathematician either) this works out to an average loan amount of roughly $204,444.
It's estimated that there are going to be somewhere along the lines of 3.2 million foreclosure filings this year. Based on our $204,444 average loan amount that comes to $654,220,800,000, around the initial $700 billion requested. Based on these figures the $700 billion would pay for every single home estimated to have "foreclosure filing" in full for 08. Now you would think, ok, so they aren't lying to us. But that's not the case. First and foremost a large number of these homes are auctioned off, sold on short sales, etc, etc. So the amount wouldn't be anywhere near the full amount.
Then you have to add in the factor of fractional banking which is where Bloomberg arrives at it's $7.7 trillion. According to Bloomberg the bailout now actually currently stands at $8.5 Trillion but let's go with the initial report from them of $7.7 Trillion. (They have since deleted the articles so I can't provide the source) Imagine that, hiding the truth. If you need confirmation all you have to do is search "bloomberg $7.7 trillion" or $8.5 trillion and you'll find many reputable sources quoting them. I did find one article on Bloomberg saying it again buried deep in another article but anyway lets move on. The Fed has only tapped half of the initial funds. So that would come to 3.85 trillion.
Now we have to ask ourselves where has the other $3.2+ trillion gone to? Bloomberg also mentioned trillions disappearing and has filed a suit regarding it. So why do they really need the remainder. The only assumption one can come to is Credit Default Swaps aka Derivatives and the pockets of already very rich people. Lets also not forget all of the money disappearing from everyone's 401k's, retirement and investment accounts but I guess that's another topic.
If you need further education on how fractional banking works I suggest these two videos.
Money As Debt
For the advanced course
The Money Masters
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). Hyperinflation will eventually be a reality -- you can't just keep printing money without consequence (Zimbabwe doesn't seem to have learned this lesson yet). 
