UNDERWATER TROUBLE

昨天CBS的電視新聞一則報導，標題是UNDERWATER TROUBLE,
裡面有提到一對夫婦０５年買了一棟房子７０萬美金，現在還欠５４萬美金，可是房子的現值，卻只有３５萬美金，putting them underwater by $ 190,000 .
裡面還有講到they are now underwater that means they owe more on their mortagage than their house its worth.還有but they don't know how long they can keep treading water.

所以，underwater 意思就是房子的現值比負債還低。而差額就接在後面，像新聞講得by $ 190,000。

另外，tread water的意思是
a) to stay floating upright in deep water by moving your legs as if you are riding a bicycle
b) to make no progress in a particular situation, especially because you are waiting for something to happen
how long they can keep treading water這句就是他們不知道他們還可以撐多久

另外還有一個新名詞"toxic asset", 根本上，我覺得是一樣的，但是，指得是這項資產。

Let's say that Bob had a loan with Mellon Bank. The Loan is for $200,000 for a house and Bob pays 6% interest. The house is collateral, meaning Mellon gets the house if Bob defaults. But this house was valued at $275,000, so what is the worry?

So now Mellon Bank has "mortgage paper", which is an asset. They can sell the mortgage to anyone they wish. Bob will then be required to pay the purchaser, who will get the benefit of the 6% interest. It's an investment which may (or may not) make more money in the future. A good idea if Mellon needs money immediately.

But ol' Bob doesn't have the money to pay this mortgage. At the same time, the house value has greatly reduced to $150,000. Bob still owes $199,000.

If Bob defaults on this, Mellon will only be able to recover a portion of their money back. The mortgage paper has now become illiquid (the house can't pay the mortgage). Mellon is now unable to sell it. Why would somebody pay for an asset that guarantees you will lose money?

That mortgage has become a "toxic asset".