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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: shades who wrote (59069)4/21/2006 8:52:22 PM
From: bond_bubble  Read Replies (1) of 110194
 
"Fat chance - they going after those katrina refugees aren't they? Gubbment not gonna be so nice to the point the gubbment blows up!"

I dont understand your point shades. You seem to be arguing against yourself. You are saying, govt wont allow people to easily get off the loan - but it will want people to take loan? My precise argument is that: Banks will go after the guys who have taken the loan. So every guy in the business will expect the same and hence not take new loan - no new credit created - banks go under. what are you saying: Govt will be lenient or not? If you say, middle ground, can you spell it for me? I can not imagine what a middle ground is.
Also, I understand that banks dont go under for the following reason: The banks pass too much bad loans to Fed. Banks go under because they can NOT create new loans and hence maintain the business... Let's say Fed takes 300% of banks reserve as bad loans ... that seems to be a good start, doesnt it? so aggressive lenders will fail for sure?
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