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To: Ilaine who wrote (304)	5/23/2001 8:52:27 PM
From: JF Quinnelly	Read Replies (1) \| Respond to of 443

Where did the money go? US interests were owed $30 billion by European and Latin American interests in 1930, most of which was never repaid. What's so hard about this? Money was loaned to Latin Americans, who defaulted on repaying it. The money "went" wherever the Latins put it. First, into their own bank accounts. Secondly, into the accounts of anyone they bought something from. A defaulted loan screws the lender, it doesn't make money disappear. If a bank held the bad loan I suppose it was charged against their reserves, and in that manner reduced the amount of credit they could create.