The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: patron_anejo_por_favor who wrote (149707)	9/23/2008 10:23:52 PM
From: XoFruitCake	Read Replies (1) of 306849

"It kinda comes down to accepting Ben and Hank's word that they know the CDS's prices more accurately than the market." they can't but on the other hand, there is no other solution. The only alternative is watching one bank after another falls (some may fail together as the bank running getting bigger and bigger) until we get to the point that no one is sure which account that have access to and which one is frozen in bk court. the only way to restart the systems is to inject new capitals that banks doesn't have into the system. The overpayment represent that new capital. I think taking equity stake in the affect banks is a good move. It will balance things out at the end. Government will definitely overpay the purchase base on prevailing market price but it may not exceed the run off value of the papers. So at the end government and tax payer may do o.k. (and may be well) at the end..

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