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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Stoctrash who wrote (11959)2/20/2009 9:32:10 AM
From: John Pitera  Read Replies (1) of 33421
 
Yes, this may be the biggest story of the week, the real situation when comparing to the Swedish Bad Bank model.

THe companies that were placed in the bad bank to be "worked out" where much more whole companies and distinct real estate and other assets. Our situation is very different in that we have these very complex interlaced CDO's with CDSwaps built into them and there is no effective way to deconstruct them.

Some holders benefit from corporate bankruptcies and others would like the CDS to "go away" which we really can not do.

Good pickup on this article.

John
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