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To: NOW who wrote (105871)	6/1/2001 1:04:21 AM
From: LLCF	Read Replies (1) \| Respond to of 436258

<"Japan must get rid of the bad loans burdening its financial sector" says AG.> ROFLMAO... I predict he'll be BUYING the very same when they appear on the U.S. Banks books in a years time with the economy imploding. dAK

To: NOW who wrote (105871)	6/1/2001 10:23:38 AM
From: Ilaine	Read Replies (1) \| Respond to of 436258

You get rid of bad loans by writing them off. That means you quit pretending they are ever going to be paid back, and you take them off your balance sheet. They are no longer an asset. That also means that you quit pretending that the collateral for the loan is an asset. All of a sudden your balance sheet has no assets - but then, it didn't anyway. That means that the bank has to admit that it is, in fact, insolvent, and perhaps operating fraudulently.