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

To: butschi2 who wrote (149762)9/24/2008 8:08:30 AM
From: Think4YourselfRead Replies (1) | Respond to of 306849
 
I think you hit the GS issue exactly. GS must delever now that they are a bank. Their assets may be excellent but if they do it now they will take a big hit due to lack of liquidity and trust in the markets. Buffet's terms may seem onerous but may in fact be much better than selling good assets at a severe loss.

Buffet probably knew this, and that is why he is making the investment.



To: butschi2 who wrote (149762)9/24/2008 11:15:24 AM
From: mutuluRead Replies (1) | Respond to of 306849
 
I would therefore expect a exemption from capital limits for GS/MS for some time until they can downsize enough.

An article in FT said they have a period of years (I think it said 3 years) to comply with commercial bank capital requirements.


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