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

To: bullbud who wrote (83358)	8/17/2008 10:11:06 PM
From: SouthFloridaGuy	Respond to of 116555

Indirectly, yes, only in the sense that banks are still functioning creatures. But Central Banks in the past HAVE directly bought assets, such as the BOJ and HKMA and activities to that scale have not yet been pursued. It remains to be seen how the Fed treats the suspect collateral in the TAF when/if it goes kaput. The hope is that by then the banks will have gotten off the ICU. So long as they can generate enough income from core operations, the writedowns can be lived with. My estimation is that given it has taken a year to write down $500b and the estimates are for $1.5T, it will take another 12-15 months to get to about $1T+ in writedowns. At that point, I think it will be quite transparent who has survived, what the remaining damage is, and what the proper valuation should be...until then, keep your seatbelt on.