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To: Allan C. who wrote (12362)	11/17/2008 9:36:25 PM
From: TFF	Respond to of 12617

Paulson put the hammer down when he recently announced that TARP would not buy toxic mortgages. The result has been MASSIVE selling of the ABX indices to new lows ( markit.com ). The highest rated AAA's have dropped from 57 to 36 since the market has realized the money would go to capital infusions vs mortgage buybacks. This is most likely the reason we are seeing the financials hit more new lows over the past week. The fear now is the potential losses that will be reported next quarter and the subsequent "infusions " of cash by Paulson to follow, which would further dilute the financial stocks.