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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (38017)	2/7/2008 11:23:28 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 95806

>> banks are the roadblocks right now. I wonder how much that is caused by the AAA rating issue of bond insurers ? If banks are worried that their capital base might shrink over-night due to rating change, then suddenly they will be out of compliance with their loans outstanding. On its own, the bond-insurance problem might resolve in a couple of years without any excess defaults. But during this period there will be great uncertainty, and banks will be reluctant to make new loans, unless they get a lot of capital infusion from the Fed, or other sources. Usually foreign. of course the foreign deposits will go to large international banks only. So the problem with local banks will continue.