[bsrsharma]

There is another issue that has not been addressed: as the Baby Boomers start to finance their retirement, the equity will start going down further. This has started in 2006 and will continue all the way till 2025. So, net household wealth has nowhere to go but down (with all the implications for consumer spending etc.,) as the mean age of population rises. The years 1946 – 2006 were the rising tide of household wealth; 2006 – 20xx will see the reverse of these changes.

[bsrsharma]

Principle and moral hazard aside, a lender should do whatever possible to maximize his net receivable on the loan. If the foreclosure route causes greater losses than principal reduction, the lender will be a fool to go that way. Keep in mind that foreclosure of a large fraction of a community is not the same as foreclosure on a few individual homes. If Detroit and its surrounds are replicated on all large cities, this country will resemble Afghanistan pretty quickly. Everybody has an interest in preventing that.

[bsrsharma]

Principle and moral hazard aside, a lender should do whatever possible to maximize his net receivable on the loan. If the foreclosure route causes greater losses than principal reduction, the lender will be a fool to go that way. Keep in mind that foreclosure of a large fraction of a community is not the same as foreclosure on a few individual homes. If Detroit and its surrounds are replicated on all large cities, this country will resemble Afghanistan pretty quickly. Everybody has an interest in preventing that.

[bsrsharma]

Principle and moral hazard aside, a lender should do whatever possible to maximize his net receivable on the loan. If the foreclosure route causes greater losses than principal reduction, the lender will be a fool to go that way. Keep in mind that foreclosure of a large fraction of a community is not the same as foreclosure on a few individual homes. If Detroit and its surrounds are replicated on all large cities, this country will resemble Afghanistan pretty quickly. Everybody has an interest in preventing that.

[bsrsharma]

Principle and moral hazard aside, a lender should do whatever possible to maximize his net receivable on the loan. If the foreclosure route causes greater losses than principal reduction, the lender will be a fool to go that way. Keep in mind that foreclosure of a large fraction of a community is not the same as foreclosure on a few individual homes. If Detroit and its surrounds are replicated on all large cities, this country will resemble Afghanistan pretty quickly. Everybody has an interest in preventing that.

[bsrsharma]

Principle and moral hazard aside, a lender should do whatever possible to maximize his net receivable on the loan. If the foreclosure route causes greater losses than principal reduction, the lender will be a fool to go that way. Keep in mind that foreclosure of a large fraction of a community is not the same as foreclosure on a few individual homes. If Detroit and its surrounds are replicated on all large cities, this country will resemble Afghanistan pretty quickly. Everybody has an interest in preventing that.

[bsrsharma]

Actually, if the government pays 50% or less of the original value of mortgages, it may not be a big loss eventually, if you compute the systemic costs of alternative scenarios. It may become like Chrysler bailout, only much larger in size. They should reprice the asset to pre-bubble days (1999/2000) and pay about 80% of that.

[bsrsharma]

Actually, if the government pays 50% or less of the original value of mortgages, it may not be a big loss eventually, if you compute the systemic costs of alternative scenarios. It may become like Chrysler bailout, only much larger in size. They should reprice the asset to pre-bubble days (1999/2000) and pay about 80% of that.

[bsrsharma]

Actually, if the government pays 50% or less of the original value of mortgages, it may not be a big loss eventually, if you compute the systemic costs of alternative scenarios. It may become like Chrysler bailout, only much larger in size. They should reprice the asset to pre-bubble days (1999/2000) and pay about 80% of that.

[bsrsharma]

Actually, if the government pays 50% or less of the original value of mortgages, it may not be a big loss eventually, if you compute the systemic costs of alternative scenarios. It may become like Chrysler bailout, only much larger in size. They should reprice the asset to pre-bubble days (1999/2000) and pay about 80% of that.

[bsrsharma]

Actually, if the government pays 50% or less of the original value of mortgages, it may not be a big loss eventually, if you compute the systemic costs of alternative scenarios. It may become like Chrysler bailout, only much larger in size. They should reprice the asset to pre-bubble days (1999/2000) and pay about 80% of that.

[bsrsharma]

Gulf investors may not save Citigroup, Dubai executive says

Mideast sovereign wealth funds may fail to save troubled U.S. banking giant Citigroup Inc. unless more cash is pumped into the lender, the head of a $13 billion Dubai-owned investment firm said Tuesday.
Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank.

“It’s going to take more than that to rescue Citi,” Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi.

The Abu Dhabi Investment Authority, or ADIA, a sovereign wealth fund owned by the world’s fourth-largest oil exporter, last year bought a 4.9% stake in Citigroup.

The Kuwait Investment Authority also said in January it would invest $3 billion in Citigroup.

Al Ansari said “it would take a lot more money to rescue Citigroup.” A spokesperson for Citi was unable to comment immediately when called Tuesday. ..

http://www.marketwatch.com/News/Story/gulf-investors-may-not-save/story.aspx?guid=%7B6C374435%2D5314%2D4A8E%2DB689%2DB8916D529B7B%7D

[bsrsharma]

Gulf investors may not save Citigroup, Dubai executive says

Mideast sovereign wealth funds may fail to save troubled U.S. banking giant Citigroup Inc. unless more cash is pumped into the lender, the head of a $13 billion Dubai-owned investment firm said Tuesday.
Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank.

“It’s going to take more than that to rescue Citi,” Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi.

The Abu Dhabi Investment Authority, or ADIA, a sovereign wealth fund owned by the world’s fourth-largest oil exporter, last year bought a 4.9% stake in Citigroup.

The Kuwait Investment Authority also said in January it would invest $3 billion in Citigroup.

Al Ansari said “it would take a lot more money to rescue Citigroup.” A spokesperson for Citi was unable to comment immediately when called Tuesday. ..

http://www.marketwatch.com/News/Story/gulf-investors-may-not-save/story.aspx?guid=%7B6C374435%2D5314%2D4A8E%2DB689%2DB8916D529B7B%7D

[bsrsharma]

Gulf investors may not save Citigroup, Dubai executive says

Mideast sovereign wealth funds may fail to save troubled U.S. banking giant Citigroup Inc. unless more cash is pumped into the lender, the head of a $13 billion Dubai-owned investment firm said Tuesday.
Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank.

“It’s going to take more than that to rescue Citi,” Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi.

The Abu Dhabi Investment Authority, or ADIA, a sovereign wealth fund owned by the world’s fourth-largest oil exporter, last year bought a 4.9% stake in Citigroup.

The Kuwait Investment Authority also said in January it would invest $3 billion in Citigroup.

Al Ansari said “it would take a lot more money to rescue Citigroup.” A spokesperson for Citi was unable to comment immediately when called Tuesday. ..

http://www.marketwatch.com/News/Story/gulf-investors-may-not-save/story.aspx?guid=%7B6C374435%2D5314%2D4A8E%2DB689%2DB8916D529B7B%7D

[bsrsharma]

Gulf investors may not save Citigroup, Dubai executive says

Mideast sovereign wealth funds may fail to save troubled U.S. banking giant Citigroup Inc. unless more cash is pumped into the lender, the head of a $13 billion Dubai-owned investment firm said Tuesday.
Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank.

“It’s going to take more than that to rescue Citi,” Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi.

The Abu Dhabi Investment Authority, or ADIA, a sovereign wealth fund owned by the world’s fourth-largest oil exporter, last year bought a 4.9% stake in Citigroup.

The Kuwait Investment Authority also said in January it would invest $3 billion in Citigroup.

Al Ansari said “it would take a lot more money to rescue Citigroup.” A spokesperson for Citi was unable to comment immediately when called Tuesday. ..

http://www.marketwatch.com/News/Story/gulf-investors-may-not-save/story.aspx?guid=%7B6C374435%2D5314%2D4A8E%2DB689%2DB8916D529B7B%7D

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