In order to avoid a major break down in the securitization paper market the big players in the US seem to think that just repackaging the papers may help.

 

http://www.bloomberg.com/apps/news?pid=20601082&sid=aCWgTl7rA6i4&refer=canada

I'm surprised such artificial method is look at favorable but I guess when in trouble one tries everything, not sure it will anything but allow a new 90 day period to start running when defaults come in. Its never the less the same paper (subprime mainly) which is repackaged here.

Anyone here sees this as a positive development?

Mr. Ludwig:

The I-banks are stealing a line from the Popeye character "Whimpy"; "I'll gladly pay you Tuesday for a hamburger today". At least that's there story. But are they really trying to delay (and worse, hide) their obligation to "mark-to-market" the value of these assets.

And will the I-banks (Mr Paulson's alma mater in particular) profit in another quarter by shorting positions where their particular actions extend the market.

George