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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Tony van Werkhooven who wrote (7751)	12/25/1998 12:02:00 PM
From: Zeev Hed	Respond to of 9980

Tony, I think that a major contribution was borrowers walking away from over leveraged deals (which made sense due to taxation), leaving the institution holding the debt with RE worth much less then the debt burden. Deregulation might have been a contributing factor, maybe even the trigger, but the mountain of defaulting debt was the underlying reason, and it came about because of a sudden change (and a retroactive change mind you, I know, since the IRS came to me asking not only the taxes but penalties and interest three years after the fact on a deal I entered into based on the then existing law, of course, I walked away from the deal leaving the funder, a S&L holding the bag) in the economic environment. Zeev