Semi-Equips - Buy when BLOOD is running in the streets! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 146.81

-1.0%

3:53 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: michael c. dodge who wrote (6060)	6/28/1998 6:54:00 PM
From: Clarksterh	Read Replies (1) of 10921

I think we should remember that $500B of "bad" or defaulted debt does not mean $500B of losses. All of that debt is not unsecured, and some of the collateral has some value. Yes and no. Once they actually get around to liquidating it, it will actually drive the prices down even more, and the rents will follow them down. As the rents drop more of their borrowers will go bust and they will have even more property to liquidate. A nice differential equation with unknown parameters - but definitely not a happy making event. At some point they may not be rescuable with an RTC type solution - the RTC relied on otherwise healthy economy and the smooth flow of capital from other parts of the country, which minimized the positive feedback effect. Clark

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next