dargie - thanks, page-3

We created the system...and now the system has collapsed.

The system created teams of initially investment bankers and property specialists, to go and find assets to buy. The assets were then syndicated and packaged into bite sized parcels, available to any mum and dad investor.

It didnt take long for far less experienced players to join the party. They started buying any old asset, knowing that the income stream could be engineered, to show an income return far greater than cash was yielding. The race was on to buy and package as many assets as possible, as all Funds under administration (FUM) - which included a little bit of equity, and alot of debt, would be charged lucrative management fees...which all came back as massive bonus' to the fund managers.

In the last few years, I saw individual investors forced out of the market as they just could not compete with the fund managers to make a deal stack up.

Now to get back to answering your question Sharky regarding assets in the books at cost price......if the assets were over bid to start with....who knows what the real value is today????

Simple, we put in on the market today, and let the market tell us.

Well have a look at the recent ASX announcements and many articles diclosing recent asset sales. NONE are occuring at even recently market down -mark to market prices. The companies are reducing the book value, only to find sale values and cap rates are worse than the amount writen down.

The risk for BBI right now, that those who were bidding beside BBI in years gone by to buy those assets, are no longer around or capable of bidding. Add to that the multitude of assets earmarket for sale.....and we are about to see some serious write downs all over the place.

This might even go as far as wiping out all equity, and forcing banks to take loss on the lending. This might just be the begining of the next wave of bank losses, and hence further bank stock price drops.

Interesting times.

Kiril