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Home Front Economy
US Treasury Secty: no quick end to credit market turmoil
2007-09-12
Posted by:lotp

#2  Think of it as a solvency crisis, rather than a credit crunch.

The loan collateral just doesn't cover the loan any more. Therefore risk is much higher.
Posted by: Bright Pebbles   2007-09-12 18:48  

#1  
Paulson said he had met daily with bankers trying to value asset-backed commercial paper and other products.

“When they are confident they understand the products, confidence will return,” he said.
No one seems to understand these products, so bankers will just have to fake it.
Posted by: Anguper Hupomosing9418   2007-09-12 01:08  

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