What Are the Banks Assets Worth?

We’re going through the exact same thing in Greece. There has been no bail-in announced yet but if there’s a bail-in announced in a country that’s a little more developed than Cyprus, then in the countries around them who might be in similar situations, maybe then people will start reacting sooner.

I can think of Italy or Portugal or Spain or maybe some of the Eastern European countries. It could catch fire very quickly. I’m not suggesting it will. But when you have people starting to take money out of the banking system -- in terms of deposits --, that’s when we all find out what the assets [of the banks] are worth if they have to sell them.

When you have to sell an asset, it’s nowhere near the worth of some quote in the newspaper or some housing index that somebody says is up five percent this year.

You’re not going to get that market price. Now you have to sell it. The market will adjust to that.

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