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

To: CalculatedRisk who wrote (88364)	11/2/2007 6:14:27 PM
From: John Vosilla	Respond to of 110194

'Citi will take a huge writedown ... and the stock will go up because all the bad news is behind us' Maybe they'll have discounted much of the mortgage mess through the magic of accrual accounting? Let's say 10M homes suffer an average loss of $100k. That is only a mere trillion dollars..pure pocket change with the total of money center banks, regional banks and other domestic financial institutions still worth perhaps 3-5 times that even today..another way to look is it's only three years of the war on terror in the debasement game<g> Then you have another $3T+ hit to wealth by everybody else in bubbleville USA...Take the DOW to about 17K to solve that problem too<g>