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

To: rich evans who wrote (101077)	2/10/2009 2:55:30 AM
From: Skeeter Bug	1 Recommendation Respond to of 110194

rich, the banks are insolvent even after TARP and TARP II. some say they need $1.5 trillion more. they don't lend to each other because they all know the other bank is as toxic as they are. there is no "term" for many of these investments. many of the former higher yielding, lower tranche assets are worthless and only the top tier tranches are still getting paid. they are worthless. there is nothing there at "term." zip, zero, zilch. nadda. i see socal going down another 30-60% from current levels - this problem gets worse and more tranches go to zero in value. commercial real estate is in the process of collapsing as all these bankrupt businesses are not back filled by anyone - the malls sit empty, the developer can't cover the nut, they walk, the $3 billion property is now worth $1.5 billion (if you can find a buyer!) and the $30 million down doesn't nearly cover the loss to the bank. we are on the edge of the abyss and moving closer every single day.