what is pna's real vaule, page-18

Let's hope we don't! But I agree with you that this is a major contraction.

GS is just like the other IBs I am sure and the story right now, as you know, is all about conservation of capital. If you are doing funding projections and have US$80m out, that is not a lot at all. In fact it is a week or two of resi mortgage funding probably to bring it to a benchmark we can all understand, but in the case of PNA, the IB RMs will be under pressure to bring the $ back in.

With the options underwater and never to be above water most likely, there is a good case that the guys in credit and risk will gang together and call the line. Prudent, probably not. Understandable yes. You and I both know that Credit and Risk have limited risk/return profiles (that is why they have that job) and right now the business heads are listening to them like never before. So, it might not make sense to us, but I reckon that credit/risk would say better us out first - even with a haircut - than waiting to the end when our subbie position will leave us with nothing. Nuf said.

As for the millionaires, I think you are right. My grandmother invested a pittance at the end of the depression and made a motza (note: my dad lost it all!).

I think we have a bit farther to go though. We are only halfway there and if you understand the option arm scenario about to be played out in the US then you will agree. But with some cash and patience without fear, we can prosper (thus my favourite quote).