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To: pater tenebrarum who wrote (65996)	2/8/2001 4:20:51 PM
From: oldirtybastard	Read Replies (1) \| Respond to of 436258

yeah, I think someone was arguing here that the fed was pumping because the lower rates created demand where this liquidity was needed....so it all went somewhere, the corporate sector and equity market. Except the cash strapped consumer is the only thing supporting the companies taking on the new debt, and now the consumer will be cut off, and rightly so. I still haven't heard even one convincing argument as to how the pigs at the fed will get themselves out of this situation. And the banks feel like corporate lending is safer: ``Consumer loans tend to go bad overnight,'' said Paul Kasriel, chief economist at Northern Trust Co. ``With business loans, you have periodic financial statements so you can see loan quality deteriorate. But if a household has used its last credit card and then someone loses a job, it's over.'' Except all the tech companies keep saying that their business slowed almost overnight, like someone flipping a switch. DCX burned $6Billion in a quarter. Sounds like a safe bet to me, except when I make a loan, I would ask, "Who will be able to buy or afford your products?", but I guess I'm too cautious -g-