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User Info Why its not so bad?; entered at 2007-12-02 21:14:39
Markreed99
Posts: 672
Registered: 2007-08-13 Shanghai
This guy manages to make it sound like theres no problem. My point isn't to attack the article, but to try to gather a bunch of semi-sane sounding analyses to remind ourselves that the market is driven by people and the majority of them read this kind of stuff, not what we are reading. I can't find anyone that even knows about the Florida fund thing.

http://blogs.wsj.com/economics/2007/11/3....

"Mr. Feroli estimates $54 billion will ultimately be written off. That would ultimately shave capital ratios by 0.45 percentage points, putting them near the low of the late 1990s ... Mr. Feroli cites a 1991 paper co-authored by then academic Ben Bernanke that for every 0.5-1 percentage point drop in capital ratios, loan growth slows 2.5 percentage points ... If banks simply slowed share buybacks, capital positions would improve markedly"