Given the substantial number of resets from now through the end of 2008, I believe it would behoove the industry to go further than it has to join together and explore collaborative, creative efforts to develop prudent loan modification programs and other assistance to help large groups of borrowers systematically.
See Warsh (2007), “Market Liquidity: Definitions and Implications” for discussion. BIS Review 59/2007  3  expertise in pricing public securities may have served them well in developing new financial products – so well in fact that they are increasingly creating and underwriting new securitized and riskmanagement products.