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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (127498)	10/4/2001 5:38:59 PM
From: heehee1	Read Replies (1) \| Respond to of 436258

OK... I'm game for the panic cycle. :)

To: pater tenebrarum who wrote (127498)	10/4/2001 6:28:14 PM
From: NOW	Read Replies (1) \| Respond to of 436258

I think we're turning japanese ithink we're turning japanese, i really think so.... "Another lesson from U.S. experience (of the '80s) is the costs of poor incentives financial institutions face when confronted with struggling borrowers. A bank often does not want to force restructuring on a borrower, preferring to hide any losses by continuing to roll over loans. A bank's shareholders are not likely to demand action on problem loans, especially if the bank might become insolvent as a result. This set of poor incentives is especially true for a poorly capitalized bank. For these banks, a true resolution will result in a markdown of the value of the loan and a further decline in capitalization. To avoid regulatory scrutiny, poorly capitalized banks struggle to keep loans current, papering over the problem in the misplaced hope for a reversal of fortune." - Yomiuri Shimbun