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To: wonk who wrote (2956)	1/9/2001 11:44:37 PM
From: Zeev Hed	Respond to of 3536

Thanks, I agree that all these were contributory elements weakening the system, but the straw that broke the camel's back, was the devaluation of the assets underlying the loans by the change in taxation of real estate (it used to be a "tax heaven", drawing a lot of money to "unproductive assets" for tax rather than good economic reasons). I maintain that the new rules were correct, but the implementation should have been gradual, a lot of dislocations could have been avoided, IMHO. I was myself invested in one of those limited partnership (for taxation purposes, of course) and the whole partnership walked away when the "at risk" rule was implemented (on already "done deals"). Zeev Zeev