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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: majaman1978 who wrote (7398)	2/8/2002 8:40:03 AM
From: TheBusDriver	Respond to of 36161

I don't remember where I read it but I think it was the Privateer who was commenting about how the FED got congress to change the bankrupcy laws, something about it favoring things like JPM having problems. Need to go to the back issues to look it up. Here is their website is you would like it: the-privateer.com Wayne

To: majaman1978 who wrote (7398)	2/8/2002 9:01:50 AM
From: TheBusDriver	Respond to of 36161

Here it is from the-Privateer: Issue 410: "Congress is currently looking at a broad overhaul of U.S. bankruptcy laws, a bill that President Clinton is threatening to veto. Mr Greenspan and Mr Summers want a portion of the law regarding derivative contracts passed as stand alone legislation. Why? Because: It would reduce the likelihood that incidents such as the near collapse of Long-Term Capital Management (LTCM) in September 1998 would pose a broader threat to our financial system." Issue 411: "As already reported in this issue, the bankruptcy bill which Mr Greenspan and Mr Summers requested on October 20 (see Issue #410), was passed by the House. Further, the increasingly perilous position of U.S. corporate bond markets is well known. So is the sudden and crashing halt in new U.S. bank lending. The potential effects of all this have been effectively hidden from the American voter by the 1000 point Dow rally of the past two weeks. But, just possibly, they have not been hidden from everyone." Also from back issue but I didn't note which one: "The nation(s) which has indulged in a prolonged period of credit expansion faces bankruptcy because there are not enough assets available with which to service the external debt. The nation(s) which has credit expanded to a lesser degree, and/or which stands with holdings of the debt paper of the first mentioned nation(s), faces bankruptcy because their own internal banking and financial systems have structured themselves on the base of the debt owed to them. In the case of U.S. debt, the other nations literally use it as the RESERVES which underpin their entire financial and banking systems. Any hint that this debt is not going to be serviced, or repaid, will wreak instant havoc." Scary..... Wayne