Interesting read. But somehow I think those estimates are understated. It's not just the loss in ABCP anymore. The banks had to unwind a lot of positions over the last week, many at a loss, and many very leveraged. (so the losses get magnified) These represent losses now, and losses in potential earnings over the upcoming year. They can't keep it all invested because they're worried about a run on their bank. So how come they aren't talking about this?

Let's put it this way, if I had to liquidate my positions right now, I would either be selling something at a loss, or selling my best prospects at a return for the upcoming year. A bank is no different, but they borrow all the money to begin with.

And no-one seems to be talking about how much Bear Stearns owes, and to whom. I find that very unusual.

PS thanks for the "happy Easter," I was travelling and didn't read it right away.

MR