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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (20738)	8/3/2007 4:50:44 AM
From: energyplay	Read Replies (2) \| Respond to of 217575

My guess is that IKB was in trouble, knew that Deustch Bank had made a pile of money betting against sub prime, and went to DB for help / bailout. IKB knows many other banks would be stuck with sub-prime, and not able to help IKB. So they went to their smarter big brother for help. DB then realized that IKB was so far in the soup that IKB could damage the whole German banking system, and had to call the regulators. When you see a fire that big, you have to pull the fire alarm. Now - DB was smart, shorting sub-prime. Somebody in the US was smart, sticking the Germans with 24 Billion of sub-prime paper. We know Countrywide was selling loads of paper to Europeans... Wonder how much sub-prime stuff went overseas ? More than was kept in the US ? Anyone in Hong Kong buy US sub-prime ?