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

To: Maurice Winn who wrote (25723)	11/27/2007 6:16:16 AM
From: TobagoJack	Respond to of 218672

hello maurice, i am guess that what was in my e-mail, attached here, may not be good news, and i am wagering that cb ilaine would not admit that the direness is not attributable to systemic, cultural, ethical, biological failure QUOTE Fascinating article here: investorsinsight.com SNIP: From a modest infancy, the notional value of CDS today surpasses the amount of underlying cash bonds by an order of magnitude.[vi] CDS contracts now total $45.5 trillion of outstanding credit risk, growing an amazing nine-fold in the last three years alone. Putting such a large number in some perspective, $45 trillion is almost five times the U.S. national debt and more than three times U.S. GDP. One way of thinking about the CDS market is that of a huge, new insurance industry whose providers reserve nothing for future losses. Imagine what would happen if $45 trillion worth of insurance policies experienced an actuarial average of 5% losses and no one had $2.25 trillion sitting around to foot the bill![vii] This woefully undercapitalized market may be a frightening reality. Sellers of credit protection post margin for marked-to-market moves, but CDS contracts are generally uncollateralized. Further, investment banks that hold one side of each CDS transaction claim to be hedged, but their financial statements show neither loss reserves nor bad debt reserves for potential counterparty failure. The absence of collateral and significance of counterparty risk have important implications discussed below. For a number of years, credit spreads have tightened to historical lows. During this time, CDS took over cash bonds as the primary form of trading in credit markets. Is it too much of a stretch to consider that spreads have been abnormally tight in part because sellers failed to price in a reserve for future losses and thus systematically underpriced risk? UNQUOTE

To: Maurice Winn who wrote (25723)	11/27/2007 6:34:43 AM
From: TobagoJack	Read Replies (5) \| Respond to of 218672

more deliciousness in e-mail tray QUOTE note also the recent court decision in Ohio where the court decided that owners of securitized mortgages could not prove they hold a claim, and could therefore not initiate foreclosure proceedings on defaulting borrowers. if this decision stands on appeal, the securitization business goes from the coma in which it is now to sudden death. after all, it means that investors have actually no collateral at all. the reset freeze plans are a desperate scheme, from the PoV of lenders it is probably the preferred option at this stage , to keep as many borrowers capable of paying as possible. the problem is that this 1. confounds a lot of calculations (obviously, if rates are not reset, the economics of the respective loans change) and 2. from the PoV of borrowers it may not be enough to dangle this carrot before them - they will still be upside down and better off just mailing in the keys. UNQUOTE

To: Maurice Winn who wrote (25723)	11/27/2007 6:55:04 AM
From: Joseph Silent	Read Replies (2) \| Respond to of 218672

Hi Maruice, I'm just trolling the boards. Your point is well taken, and I do understand what you are trying to say. However, when all is said and done ..... people are just people, and are the product of their environment [e.g., you hope your children are positively impacted by the Lada experience]. People often/sometimes don't have a choice and have to work with the opportunity available. Judgement comes easily, especially from afar. Out of curiosity, I poked around a bit. Maybe people are indeed people after all. :) Denmark: forum.eurobasket.com "Dutch police have arrested 52 people suspected of defrauding gullible Internet users in one of the largest busts of the infamous "Nigerian e-mail" scam. Hooray for the Dutch police." blogs.msdn.com The windmill scam is new to me: heartland.org Wire-transfer scams in Amsterdam: expatriates.com Humanitarian scam? freedomofmind.com Most of us can find several Ashkenazi scams ...... and I have nothing against the Danes or the Ashkenazis or the Nigerians. I personally know of a situation where an Ashenazi bilked a new Russian immigrant (a relative) out of a serious amount of money --- a socks deal --- equivalent to several thousand Nigerian 419 scams. A 100 such Ashkenazis might put us all out of business. :) People do what they think they need to do to survive. Their thinking process is more important than the content, but both process and content are complicated subjects and depend on many things. I'm glad most of us are not in a position to have to choose between 100 Danes, Nigerians or Ashkenazis ..... and that in itself has a cause. :)

To: Maurice Winn who wrote (25723)	11/27/2007 5:02:19 PM
From: LTK007	Read Replies (1) \| Respond to of 218672

When your dead, your biological p--- and s--- machine but food for worms or fuel for the crematorium, who do you pick then, you racist POS.Max