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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: XoFruitCake who wrote (149675)	9/23/2008 9:43:14 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

That was my take as well. You don't really wanna horse trade with Buffett. You'll lose every time.<NG>

To: XoFruitCake who wrote (149675)	9/24/2008 6:17:44 AM
From: butschi2	Read Replies (2) \| Respond to of 306849

Even if GS wouldnt have losses on their assets they must be desperate for new capital, because they are far more leveraged than allowed as a supervised bank and therefore they must deleverage sharply or raise a lot of capital. Perhaps a combination of both. I would therefore expect a exemption from capital limits for GS/MS for some time until they can downsize enough. They will nearly have to cut theirs assets/liabilites in half by going to a regulated bank. Credit should get rellay tight with around $1 trillion alone getting canned from the system through LEH hitting the wall and GS/MS going from IB-Leverage 1:20/30 to bank leverage ~1:12/15. Coupled with other players in need of deleveraging, i would expect credit exspecially for hedge fonds und LBOs to get elusive and for normally investment to get really tight AND expensive, like for JUMBO-Mortgages.