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

To: Elroy Jetson who wrote (75114)	2/23/2008 3:55:23 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

absolute I realize what is happening. I do not know if it is $70 billion, $150 billion, or $350 billion (I think the middle), but even at $70 billion banks cannot take the hit. However, delaying the inevitable makes them zombies, just like Japan. Mish

To: Elroy Jetson who wrote (75114)	2/23/2008 3:56:27 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Credit Card Reform Is Coming globaleconomicanalysis.blogspot.com Like it or not (banks won't but consumers will) credit card reform is coming. Mish

To: Elroy Jetson who wrote (75114)	2/23/2008 9:22:18 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 116555

They also get a bit of a leverage advantage by throwing money into the monoline rathole. Seems to me they are trying to buy time, hoping things get better. They will have to write off their CDO losses at some point. Even though the economic situation is grim we are likely to rally strongly on any agreement. An awful lot of people are in denial. There is a good chance the markets go straight down after this final rally. There were a lot of optimists on CNBC this past week. I note almost all of the people saying it's time to buy are from non-public companies. Went to short 4-5 of them and not one was publicly traded. Really wanted to short Cumberland Financial badly. Their "expert" is about as clueless as they come.

To: Elroy Jetson who wrote (75114)	2/23/2008 10:48:58 AM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 116555

I think I'm turning Japanese, I really think so.

To: Elroy Jetson who wrote (75114)	2/23/2008 8:49:08 PM
From: Sunny Jim	Read Replies (1) \| Respond to of 116555

<<According the Bank of America, banks will need to write down $340 billion (of CDO debt) if the bond insurers fail>> This is truly unbelievable. If the banks would have to write down $340 billion, how in the world does a $5 billion investment save that? Somewhere there is a number (apparently unknown or at least not divulged) of the amount of insured stuff that is or has a high probability of defaulting. Obviously that number exceeds the capital resources of Ambac or there wouldn't be such a stink about it. My guess is that it is probably in the middle of zero and $340 billion, so that's what the banks will ultimately have to pony up. Are they between a rock and a hard spot or what? It's pure stupidity to think that putting anything into Ambac isn't throwing good money after bad.