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October 08, 2008


George Benedict

What Ronan refers to as the "negative feedback loop" is the most important issue to be considered.
When the dust settles, which is still a long way off, rational minds will come to understand that this negative feedback loop created the perfect storm in our financial system, turning what could have been a manageable credit event (sub-prime credits) into a downward spiral of negative feedback that spread through the contagion created by FASB 157 to affect all asset classes and though "well-intended" led to the demise of some the most revered names in banking globally.

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