🚀 go-pugleaf

"RichD" <r_delaney2001@yahoo.com> wrote in message 
news:0a986392-6cb9-4f6d-af33-38712c199c4e@e6g2000prf.googlegroups.com...
> In the Wall Street Journal recently, there have appeared
> several good opinion pieces on the sub-prime fiasco.
>
> One discussed the way in which CDO mechanism enabled
> the creation of new credit, a big factor in the flood of liquidity
> during the latest boom.  Apparently, securing these loans, and
> moving them 'off balance sheet', allowed the banks to continually
> create new credit.  Now, after widespread market collapse, the
> banks are forced to move them back 'on sheet', taking losses,
> and evaporating credit.
>
> The author distinguished between the creation of money - which
> only central banks can do - and creation of credit.
>
> I'm no accountant, so I'm looking for some explanation of this
> on/off balance sheet magic.  Anybody know anything about
> financial accounting?

This was discussed in ie.general and uk.finance last year


http://groups.google.ie/group/uk.finance/browse_thread/thread/af9a5d33a5c9855f/8ad921168bf23afa?#8ad921168bf23afa



-- 
FERGUS O'ROURKE
www.irish-lawyer.com
(Not just law stuff)