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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: YanivBA who wrote (69768)	9/14/2006 11:29:14 AM
From: Ramsey Su	Read Replies (2) \| Respond to of 110194

federalreserve.gov (the conclusion section is a very good read) Basel II is way too complicated for me. I have tried to read a number of reports but cannot draw any conclusions. However, I do believe all the institutions affected are busy implementing compliance strategies. What I do not understand is how the market is going to treat banks that are Basel II compliant, those that are not, and those that are not subjected to Basel II. Similarly, regarding guidelines on non-traditional mortgages, should the regulated lenders such as WFC and WM be treated the same way as unregulated lenders such as LEND and NEW? There could be mass confusion ahead, especially if credit defaults spike in the next few months. Time is of the essence. When we supposedly have a trillion dollars worth of loans set for recast next year, the system cannot handle any liquidity problems, even for a very short time. The bigger problem may be finding a solution. With all the toxic upside down loans in place already, secured by HOMES, the solutions are very limited, if not non-existent.