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To: russwinter who wrote (50464)	5/3/2006 9:45:57 AM
From: John Vosilla	Respond to of 116555

Seems Wall Street still doesn't buy the smoke and mirrors argument with regards to our banking system. Hard to say how big the impact of what we all expect to be a bloodbath of foreclosures to hit within a year will be on them. Short a bunch of the 'levitating lenders'..CORS,LEND,DSL and FED which I think get hit very hard. Whether Bank America, JP Morgan Chase or Citicorp take a big hit remains to be seen if the business side remains strong..

To: russwinter who wrote (50464)	5/3/2006 10:45:50 AM
From: LLCF	Read Replies (1) \| Respond to of 116555

<Smoke and mirrors, tiny loan loss reserves, right at the point when foreclosures and deliquencies are surging.> I don't know the inner workings of banks overall portfolio's, but they do seem to have been masters of packaging, marketing, and offloading risk from all the sh&T that their nice fat clients excrete. IMHO it may not be all that important what the state of the actual money center banks are as the systematic risk is certainly somewhere... AND they have had an integral part in it's existence. FNM & FRE are good examples... DAK