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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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Does one think that there is enough money in FDIC to cover those BK Bank deposits?
The problem is the pricing of the commercial paper that encompases those sub-prime loans. No one knows which are good loans or bad loans they are all mixed up together in the commercial paper in the financial sectors portfolios. By saying that these loans will be good for 5 years provides a floor for value and they can again be traded with confidence. Otherwise no one knows the value and attending risk involved so they in a sense become untradable.
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"Some Observer"
Last edited by tabs; 12-05-2007 at 04:47 PM..
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