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To: yard_man who wrote (188920)	8/21/2002 4:33:56 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 436258

Tip, Nah, our bubble was caused by too loose credit to the credit unworthy and overcapacity. So, loosening the credit spigots will not cure it. We have no real cure for overcapacity, as our balance of payments show that it is, at least partially, an imported problem. Also, the glut of broadband capacity will not go away soon. Tossing out money so folks can build more useless capacity makes no sense. BTW, I do not think that credit for the creditworthy is all that tight. If you have a good credit rating and a project that looks like a money winner, you can raise money. If you are trying to fund the mistakes you made in the past, then credit is tight. I don't know if I thought there would be a margin increase, just that there Should be one. When AG dissed the idea, I ranted for a while. I think that was probably when these guys were testifying, though I wasn't paying attention to them. The way to get out of the bubble is to make certain credit is there for sensible projects, not for supporting the insupportable. However, do we have bankers, central, money center, or local who can tell a good project from a bad one? I know we don't have such folks at the equity side of the investment banking houses. It's not like the money dried up for crapola, it has dried up for everything. So, there is no interest in the Medco IPO. Hmmmm, a company that is making money and growing its eps. And has a business plan that is working and dominates an industry that grows more important every year. Don't want any of that crap 'round here. <g> I think that capacity and overcapacity are here forever in the capitalist system, which makes for cycles. Banking plays its part, an important part, but bank reform would not make the cycles not happen. And I don't really know that you can reform common sense.