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To: BigBull who wrote (37886)11/16/2000 8:42:11 AM
From: pater tenebrarum  Read Replies (2) | Respond to of 436258
 
credit spreads truly ARE telling...he neglects to mention btw. that the easy availability of credit during the boom has produced a lot of malinvestment, which is now collateral for some of the outstanding debt. it's only natural that at this point banks should begin to experience the first problems. unfortunately the malinvestments are difficult to quantify...one can only assume from the enormous credit expansion of recent years that the amount is probably very large.
the bank stocks have been trading in lala land in the meantime...that's likely set to change, as more and more problems come to light...