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.

Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (92698)	7/9/2002 1:04:03 AM
From: Jdaasoc	Read Replies (3) \| Respond to of 99280

Banks can borrow at 1.75% and lend to credit card holders at 17.99%, they can afford to write off some of it. I don't have demographcis handy or memorized but a good percentage of Americans don't want credit ratings to go in crapper or declare personal bankruptcy and will pay usuary rates. Sears got caught by FTC targeting deliquent credit card holders to pay them first before mortgage, living expenses etc. As another example that things don't just crap out and then have banks panic. My father relates a story in his families rise up from Brooklyn waterfront to Brooklyn Heights in a series of more expensive houses during the first half of 20th century. It was during the 30's his father coveted a property in Park Slope that was foreclosed by Bank in 1932 and they didn't enough cash to afford banks asking price until 1945. It seems that my grandfather made many futile attenpts to buy property from bank but they wouldn't lower the price from what they had on their books in 1932. Interest rates aren't going up until banks have very safe profits and reserves. Retail and personal bankruptcies are just pimple on backside of economy. Equity price implosions of the like of ENE and WCOM are more of a troublesome problem then anything mentioned so far. That is why Bush administration is going full court press to avert more corpoarte accounting misdeeds. I can remember period in late 70's nmaybe early 80's when Englishman named Robert Maxwell took Macmillian Publishing down on acquition excesses and he was found drowned off his yacht after . Executives from those days had some sort of conscience and remorse even if they where cooking the books now they just plain greedy and arrogant.