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Old 09-29-2008, 07:07 AM  
StuartD
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Join Date: Jul 2002
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From the articles I've read from financial experts, they had interpreted the reasoning to be derived from the outstanding mortgage credit that's out there. Naturally, they phrased it better than I can.

But essentially, it was estimated that there was some $14 trillion in mortgages that needed to be covered, and thus they calculated 5% to cover it... which amounts to $700b.
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