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Originally Posted by kirkX5m
what also troubles me is that large, i mean we are talking fortune 500 companies like BofA, Cwide and even IBanks like Bear Stearns played this subprime game and are losing their ass BIG TIME. All those analysts, all those smart ivy league school schmucks and this debacle is unfolding. AMAZING!!!!!!!!!!!!!!!!!!!!
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here's what you have to consider - if all your competitors are jumping in on doing these loans and grabbing large market share of the products and profiting, you in turn will need to jump in and get market share even if it is agianst the wishes of your market risk officer. Of course, they do hedge on the other side to balance out the risks but still you can never have an instrument that has 0 risk even with a say a AAA insured bond as rated by Moody or S&P.