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To: LLCF who wrote (147697)1/31/2002 11:52:34 PM
From: clochard  Read Replies (1) | Respond to of 436258
 
The fed might have the right idea...lend money to the banks, who lend it out willy nilly to the masses for a profit, even if the default rate is high. This keeps the banks healthy and the economy going. The Japanese banks only lend money to companies that don't need it. As long as the liabilities are securitized properly and/or insured, the investors out there bear the risk and get some of the rewards too.

Its like Afganistan food drops. You don't go around trying to figure out who is healthy enough to receive food and who isn't. You just throw cheap food all over the place, except to the ones that really look dead.