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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (14967)	7/27/2002 10:20:49 PM
From: Don Earl	Respond to of 78644

Speaking of credit. I ran across this while wondering if there were any similarities between the current market and 70 years ago. nytimes.com I skim through the news items on the NASDAQ site most days and looking at the news from 1929 was interesting to say the least. Some of the names have changed, but the stories sound the same. I don't see much difference between margin at 10% in 1929 and getting checks from Visa to write for cash in 2002. Too much debt seems to be part of the formula.

To: Don Earl who wrote (14967)	7/29/2002 6:13:09 PM
From: TimbaBear	Read Replies (1) \| Respond to of 78644

Don I agree with a lot of what you said about responsibility of the credit card companies to shoulder the burden of delinquencies generated by ill-conceived marketing and underwriting of broad categories of credit risk. I think today's rally, in part, was relief that the bankruptcy bill got shelved at the last minute. We've got 5 or 6 weeks before it becomes a front-burner issue again. A wise government would have told the credit card companies if they don't like their default rates, to change their lending practices. Slowed consumer spending due to changed lending practices is a sounder footing for the economy, IMO, than slowed spending due to the impact of the bankruptcy changes. I believe, too, in addressing the root of the problem rather than only punishing those who are seduced. Timba