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To: Paul Kern who wrote (65127)	9/24/2008 1:50:02 PM
From: Keith Feral	Read Replies (1) \| Respond to of 118717

I hear you Paul. Look at the other side of the risk. What happens to the derivative dealers that wrote naked shorts on all these loans when the government says they will buy everything in the system at Mark to Maturity. The sheer risk of this opportunity could wreck all of the shadow capital that has been making these balance sheets so transparent. The CDO markets are just beginning to move higher. $63 trillion worth of CDS contracts could be in an absolute disarray. I don't trust the CDS market any more than I trust anyother market. The bailout plan could clear the fire sale prices without spending a single dollar. The mere threat of the plan could force the everyone that is short the derivative market to start closing out short positions and hedges.