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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: carranza2 who wrote (33714)5/15/2003 4:00:59 AM
From: smolejv@gmx.net  Read Replies (1) of 74559
 
>>I suppose the lenders can protect themselves to some degree with interest rate derivatives......or is that a dirty word? <<

It's the NIMBY - not in my backyard - situation. Everybody wants cheap rates but when it comes to the future development, it should be somebody else's risk. And then everybody has his lemonade stand set up, ready to sell insurance, now and then looking over his or her shoulder, if JPM, Fanny Mae and eventually Greenspan are still standing or are they already keeling over. Actually, still better - sell the client castor oil or whatever for lemonade and hit the road (grab and run tactics).

Of course, it's just the impression of what I see through my rose-colored glasses ;
The situation reminds me a little of the status of nuclear power in Europe. Everybody wants to have cheap energy, but storage of burnt-out elements?... "Over my dead body". And so the Castor (such an apt description, none of my fault) container trains roll across Europe, from Germany to UK and France, and then back again. Crazy.

RegZ

dj
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