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To: skinowski who wrote (169662)7/13/2008 12:23:12 AM
From: Moominoid  Respond to of 209892
 
Well their loans are higher quality than the average mortgage loan as they rejected most of the weird stuff. So their losses percentwise should be lower than those of the average financial institution. They just need enough capital to stay solvent. Was reading about (from Mauldin) how in the early 1980s the US had a similar situation with Latin American loans/bonds. The solution was not to mark to market everything at once...