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To: Real Man who wrote (349230)	11/23/2007 10:29:55 AM
From: Gut Trader	Respond to of 436258

Including-Repeal of Glass Stiegel & bankruptcy law changes...nextup..conversions of foreclosed condos to debtor's prisons....?will indentured slaves count toward unemployment numberz.....gobbble boooyaaah

To: Real Man who wrote (349230)	11/23/2007 10:33:40 AM
From: stan_hughes	Read Replies (1) \| Respond to of 436258

You already know the answer to that -- all those instruments have to be re-priced in order to reflect their true underlying risk, rather than the Goldilocks model version of the risk. Until that happens, global capital flows will remain stifled. Of course, nobody wants their existing asset positions to be re-priced in such a manner, because that would mean a lot of entities would have to recognize gargantuan capital losses that will render many balance sheets insolvent and put some very big players six feet under. So we wait. Eventually somebody big will not be able to hang on any longer under these restrictive conditions, and we will get another blow-up credit event. IMO the only matter open to question now is whether the required bloodletting will happen quickly or slowly -- for the time being, the bankers still have some degree of control over that -- on one hand they probably don't want to orchestrate a near term panic, but on the other hand they don't want a 10-15 year recession either. Not very nice choices, but the mistakes were made a few years back and there's not much they can do about that now