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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: NOW who wrote (73454)2/28/2001 7:09:10 PM
From: Michael Watkins  Read Replies (1) of 436258
 
>> the M3 rising contradicts that does it not? <<

No, it doesn't. From the article:

"As a result, the banks had to make loans to entities with lower credit ratings in order to maintain their interest income levels. These loans are starting to come apart. As a result, all of these banks are tightening credit - not loosening

If money supply is increasing - it still has a cost. And even if the cost is decreasing and supply increasing, if the risk profile has shot way up - and it has - what institution is going to dole out more credit to risky situations *if* it already has a big portfolio of risky situations?

Bank shorts might be profitable, entries here and now offer reasonable risk. (just a glance at the BKX)
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