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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Vitalsigns who wrote (71828)11/30/2007 11:33:14 AM
From: mishedlo  Respond to of 116555
 
yes and know.
It creates a market to market for those tranches but banks will likely skate if holding different paper.

Mish



To: Vitalsigns who wrote (71828)11/30/2007 11:34:03 AM
From: mishedlo  Respond to of 116555
 
Lenders Rapidly Tighten Credit
globaleconomicanalysis.blogspot.com
Commercial and industrial bank loans and short-term commercial paper peaked at about $3.3 trillion in August. By mid-November the total was $3 trillion, a drop of nearly 9 percent. Never in history has credit contracted this rapidly. LIBOR, the rate at which banks lend each other is soaring. If LIBOR stays elevated, the market is at extreme risk.
Mish