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Non-Tech : Derivatives: Darth Vader's Revenge

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To: Henry Volquardsen who wrote (1048)12/31/2001 10:31:49 AM
From: Worswick  Read Replies (1) of 2794
 
Many thanks Henry. Read your interesting reply on the other thread as well.

Turning from Japan to the United States ... I know this might seem sophomoric but, though the central government authorities here have flooded "the system" with liquidity, according to a substantial "insider" LA real estate man I spoke to yesterday... apparently the banks are refusing to lend. As a result of our fractional banking system does the government now have to get into the game of "guaranteeing" the banks their loans?

It seems to me the most pernicious result of a deflation is that "everyone" waits to get better deals... the banks presumably will wait until "the quality credits" emerge.

A happy new year to you.

Clark
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