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To: Jimbo who wrote (62319)	1/27/2001 4:12:53 PM
From: patron_anejo_por_favor	Respond to of 436258

<<IMHO months ago the FED cautioned corporations to wise up and limit loans to credit unworthy companies .. and they took heed>> Right. Which is why GE capital extended a $450 million dollar line of credit to XRX in early January, when it became known that they had exhausted their 7 Billion dollar line of credit. biz.yahoo.com Or that BAC continues to report increasing write offs due to bad loans: dailynews.yahoo.com Or that defaults on junk bonds continue to soar: biz.yahoo.com Let's not forget that BubbleBoy exhorted banks to continue lending in his speech in December. They'll continue doing so, as long as it allows them to avoid marking to market all the bad paper now rotting in their loan portfolios. Consider the recent volume of business loans: biz.yahoo.com biz.yahoo.com biz.yahoo.com biz.yahoo.com biz.yahoo.com Lending slowdown? Hardly! The term "Ponzi financing" appears to fit SO much better here.... Regards Patron

To: Jimbo who wrote (62319)	1/29/2001 10:27:08 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

Jimbo, on the contrary, banks have in recent months been forced to lend to the weakest borrowers, as emergency credit lines began to be used due the shutting down of the junk bond market. and Greenspan didn't caution anyone...on the contrary, he admonished the banks to keep lending, in public to boot. if you remind me later tonight i'll hunt up the relevant part of his December speech to the banking association... and companies like CSCO, LU, etc. have by necessity stepped up their lending too, as their customers had no access to capital for several months. again, official announcements to that effect were made.