Pimco Boss: $1 trillion housing losses seen

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<strong><em>Pimco Boss: $1 trillion housing losses seen</em></strong>

"The worst conditions in the housing market since the Great Depression have put many existing mortgages at risk. A total $5 trillion of mortgage loans are in risky asset categories, Gross wrote, adding that "nearly 1 trillion dollars of cumulative losses will finally mark the gravestone of this housing bubble."



U.S. homes purchased in or after 2004 are now at risk of their mortgages turning "upside down" otherwise known as "negative equity," Gross noted. That's when the value a house can fetch falls below the mortgage the homeowner owes. Some 25 million U.S. homes are at risk of falling into negative equity, which in many cases results in foreclosures, Gross wrote.

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