Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (32935)	9/26/1998 11:38:00 AM
From: Knighty Tin	Respond to of 132070

MMV, We are talking about the same thing. The credit spreads with European and third world countries are unfixable right now. The CMO/Treasury spreads can be unwound, but at losses greater than the capital. So, the banks hold them hoping for a turn. It may or may not happen. It could get worse first. He did make one specious argument about the Drexel bailout. Yes, the lenders did get more than one dollar per dollar, but over a long period of time. And no earnings for a few years is deadly in the leveraged banking business. Of course, they used phony accounting to say they made money, but the stock values quickly reflected reality on the downside. MB