Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (89359)	2/9/2001 5:38:57 PM
From: Knighty Tin	Respond to of 132070

ild, the explanation is simple: the Fed has lowered rates in a huge way. That is always initially good for the lenders. Then it gets bad. The folks who are buying this stuff near its high haven't thought about what happens to returns when 65% of all mortgages will be refinanced this year. Or when the laid off folks at Dell and Amazon can't exercise options to pay their credit card bills. So, assets that are performing get a haircut in their returns while non-performing loans baloon. Not a great scenario. Consumer finance? A pox on all of them. But, in general, I like an HI, as a company and in its pe ratio, better than I like a Providian or MBNA.