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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: IngotWeTrust who wrote (11341)9/19/2008 7:12:25 AM
From: Don Earl2 Recommendations  Respond to of 71475
 
RE: "$6 per $1K paper (aka 16:1 leverage)"

Did you mean $6 per $100? That would be 16.6:1.

That's pretty close to the numbers I've seen recently, which is described as "well capitalized".

RE: "Doesn't matter if someone wants to stay in their house."

Actually it does. If 6% of the value of the loans are lost on default, it wipes out the six bucks. No more "well capitalized". No more leverage. It all comes down like a ton of bricks.