Blogging Broker

You have heard of “Toxic Assets.” They are those assets on the banks books that fit this definition”

perniciousness: grave harmfulness or deadliness

Let me preface this video with some banking 101. When you put 1,000 in the bank you have an ASSET on your books. But, when the bank has your $1000.00 it now has a LIABILITY = the bank is now liable to return your money with interest. What the bank does with your money is loan it out with interest. Once the bank loans out your money, the money lent then becomes an ASSET on the banks books. That is, the borrower is now LIABLE to pay back the bank with interest.

Imagine now loaning out money for these homes. It would not surprise me if the banks loaned out tens of thousands of dollars for these homes. Little wonder why the banks are not in a rush to foreclose on some of these homes.

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