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To: Crimson Ghost who wrote (75953)3/11/2008 8:02:29 PM
From: rich evans  Read Replies (1) | Respond to of 116555
 
I kind off agree with Roberts. If the loans were direct loans, and not CDO type then the banks etc could treat each loan at its book value with hold for investment rules taking credit provisions for the non performing loans. Let the holders of the CDOs do the same , keep at book value ,hold the bonds and overtime mark them down when their is a default uup to the amount of the default. Banks balance sheets stay OK, their capital is preserved on the books, and they can loan and make more money to offset against future credit provisions they may have to take on the CDO defaults. Voila, problem solved.,

Rich



To: Crimson Ghost who wrote (75953)3/11/2008 8:14:58 PM
From: TobagoJack  Read Replies (1) | Respond to of 116555
 
<<According to Paul Craig Roberts ending the crisis is no big problem -- just prevent banks from marking to market>>

... better still, have the banks mark to market, and let us all hold hands, and refuse to recognize the resultant vaporization of purchasing power

better, let us all make the japanese pay the party tab, for they are still rich

:0)