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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Neil H who wrote (8341)	9/23/1999 6:23:00 PM
From: Michael Burry	Respond to of 78955

In their SEC Filing 10Q, they noted "moderating demand for unsecured consumer debt products." That was the warning . Growth is dependent on the bond community receiving these things well. This can get ugly, since finance companies often support their securitizations by backing them, making them "semi-secured." We're looking at $70 billion + in credit card debt that is an asset on Bank One's balance sheet. They'll earn 2+ Billion this year. The question is how much will have to be written off from here (given that once the bubble is pricked all manner of consumer leverage will become a sledgehammer on their heads), and how they will ever grow from here? I think Bill Miller might be early here, too. It just made a new low today. Mike