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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: tom pope who wrote (44140)1/6/2004 12:21:03 PM
From: energyplay  Read Replies (3) of 74559
 
Hi Tom - the US has been through this last recession with very few major bank failures - maybe Providian credit cards and some sub prime auto lenders, to include other financial areas .

WHy no big bank problems ?

SOme theories -

1) Real estate loans were held in check because of recent experience.

2) Loan standards for smaller enterprises were too high, aviding defaults but starving many firms of capital.

3)THe nasty loans were in telecom, and they were syndicated areound to spread the risk.

Comments- the no big bsnks failing is the dog that did not bark during the night, and may be important...
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