Edward Harrison

German Banks Loaded with Toxic Paper

Positroll, you state the facts well. I would agree with your sentiments. Although I would give myself an out if the economic situation does not stabilize as it is seems to be doing right now.

Thanks for the contribution.

German Banks Loaded with Toxic Paper

Postitroll, you make a valid point regarding the security underlying mortgage assets in Places like Germany versus the U.S. and regarding the size of the bubble. I would like to add two points.

First, Germany never participated in the bubble, yet the German banks did through their investments in U.S., Eastern European, Irish or Spanish securities markets. Depfa and the Land Banks come to mind here.

However, it should also be noted that we are probably talking about nominal dollars of assets at book value here. These numbers being bandied about in no way reflect the magnitude of eventual writedowns that will be taken - this is probably an order of magnitude less - as you suggest.