UBS Reports Record Loss and $14B Write-Down

[CorpGovActivist]

http://news.google.com/news?hl=en&tab=wn&ned=&q=ubs+record+loss&ie=UTF-8">Up early to spend some time with foreign press, caught this.

- Dave

[malaise]

1. They're all crashing

like ninepins

[AP]

2. When you think about it, of course housing market crash is going to result in huge loses in financia

sector.

Everybody lives in a house. It's the single biggest asset for a lot of people. The only thing bigger might be your retirement accounts.

The single biggest asset owned by a lot of people, which is heavily leveraged for a lot of people, is falling in value by very large amounts. So where are those losses accumulating? Not only in the hands of homeowner/borrowers, but in the hands of the people who lend against those assets.

They're losing money from people who are upside down on their mortgages when they sell, they're losing money from people who aren't paying their mortgages, and they're losing money just by the fact that people are taking smaller loans and fewer loans for lower amounts (and therefore paying lower or fewer fees, and paying out less interest to banks).