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To: Ken98 who wrote (15730)	9/2/2000 7:17:44 PM
From: LLCF	Respond to of 436258

<Some of these apartment loans they are doing lately aren't going to be pretty when the cycle reverses. A lot of these "non-profits" are taking huge fees (compliments of Fannie) just to come into a deal and lend their "name". The deals make no economic sense other than to generate fees for the developer and the non-profit. When the deal goes south the developer hands over the keys, most are non-recourse to the borrower. > Are they really doing these again??? Any 'size'?? DAK

To: Ken98 who wrote (15730)	9/5/2000 8:38:54 AM
From: pater tenebrarum	Respond to of 436258

Ken, both the treasury(via Gensler) and Greenjeans have repeatedly stressed this year that there's no 'too big to fail' and no guarantees for the GSE's. BUT i believe when push comes to shove, this will be quickly forgotten. Greenspan's middle name is moral hazard...he'll bail out the big speculators at every adverse turn of events. the justification will be as usual 'systemic risk'. no doubt systemic risk exists and is in fact higher than ever...therefore rest assured, when the house of cards threatens to fold, bailouts will be the order of the day. imho. the only event i can imagine that will be immune to a bailout would be an LLCF so big that it can't be outprinted. certainly within the realm of the possible eventually...