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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (100045)	12/1/2008 7:01:40 AM
From: Hawkmoon	Respond to of 110194

However, your argument does not take into account the leveraging of the mortgage debt that was involved. No... I just didn't address it as specifically as you have. But you're quite correct. The general deleveraging we're seeing is from "IB" status down to the 12-1 leverage required by a commercial bank. So if your 20-1 figure is correct, we've still got some ways to go to hit 12-1. But that's all pretty general and back of the envelope. Hawk