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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (1408)	3/8/2001 10:48:49 AM
From: Ahda	Read Replies (1) \| Respond to of 24758

My own thoughts are that there could be a tendency to over fund in base products . As the net bubble got out of hand there will most likely be a contraction in telecommunications finance. I hope bankers and brokers use facts minus the FED's suggestions on when and when not to issue loans.

To: FR1 who wrote (1408)	3/8/2001 12:40:04 PM
From: GraceZ	Respond to of 24758

Banks can do some notoriously dumb moves when they start getting large numbers of bad loans on the books. I remember in the last shakeout here in Maryland. I had this one company that I did a lot of work for, they were a mid-size firm that was very profitable and very well run. I loved doing work for these guys because the jobs were big and they always, always paid me on time. Right around the savings and loan crisis they started paying me late. I talked to my contact and found out the reason. The bank that they had their line at, Maryland National was in serious trouble. They had enormous amounts of bad loans mostly to real estate developers that were caving in. They needed to write off the bad loans and shore up their reserves. So what did they do? They called in the lines from those companies that were fiscally solvent, their best customers! I guess they figured that these companies could get financing from other banks. Only it seemed like all the banks were choking off new lending because they were all closing the barn door after the horse was gone. Meanwhile my client went into cash flow hell for about two years as a result of their actions.