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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (10086)	9/27/2008 12:15:53 AM
From: John Pitera	1 Recommendation Respond to of 33421

It seems obvious that the only way out of the debacle is for counterparty risk to be somehow erased. The holders and the counterparties will do this voluntarily or it will happen by decree but it will happen. Otherwise, the financial system will indeed implode. the biggest problem is that all of this risk; the Credit Default Swaps; the CDO's: SIV's and other products are positioned all around the world and their is absolutely no global equivalent to the FED, The FSA in the UK, the SNB, the ECB, RBA, Canadian Central bank.... to work this out. This is going to continuing to morph into an already untenable situation, which will stretch the minds and the resources of the best statemen on the planet. The world will build fiancial oversight agencies that have to deal with this global dislocation. The UK's Financial Services Authority is already ahead of much of the world in the breadth and deepth of their regulatory oversight. John