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Politics : Ask Michael Burke
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To: Mike M2 who wrote (59245)5/13/1999 1:24:00 PM
From: Freedom Fighter  Read Replies (1) of 132070
 
Mike,

>>I haven't compared their balance sheets to a money center bank but I
would suspect you would find extreme leverage which doesn't concern investors because of the implicit gov't guarantee.<<

I agree with you. They are highly leveraged, but I still don't understand how they can expand credit. There must be idle money to lend in order to do that. I'm missing something. There must be more idle cash than I am aware of. Maybe it's just that I never have any!!! <g>
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