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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (7733)	11/12/1997 8:23:00 PM
From: Haim R. Branisteanu	Respond to of 18056

Carl CCI was $13 to $15 for a long while! But this time is different, and I mean it, in certain ways. CCI went down to $13 because of RE loans mostly local (US based), now it is different because most RE loans are securitiezed and sold to pension funds, insurance companies and fix income funds. Now this is the BIG problem which will affect all - PENSION FUNDS WILL BE UNDERFUNDED if a severe recession will come about!! Well I realy do not know how they will solve (bail out) this problem. CCI and all ohter banks have tremendous exposure in derivates which may be prone to the DOMINO effect. The exposure to the developing countries may be big but most loans are syndicated anyway, so for me it is a puzzel. The lack of business activity will hurt the banks FEE REVENUE which account for much of their profit and that's a stock price problem. If it sounds complicated it is, the bottom line is that the "nesteggs" of many may shrink substantialy or even evaporate. It will take soem more time. Happy Trading Haim