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To: reaper who wrote (192902)	9/20/2002 1:43:44 AM
From: mishedlo	Respond to of 436258

Japanese Bonds Fall as Auction Fails to Draw Enough Bidders quote.bloomberg.com

To: reaper who wrote (192902)	9/20/2002 8:43:24 AM
From: Freedom Fighter	Respond to of 436258

>>wayne, i THINK that he meant, in 'extend even more loans' is not NEW loans, but extending the old ones (i.e. the old ACF trick of letting customers miss a payment or two and tacking it on to the end of the loan; they call it 'deferrals', i think). by allowing customers to defer payment, they avoid delinquency triggers, but they lose cash flow -- cash that is needed to pay the holders of the securitizations.<< THanks for clarifying.

To: reaper who wrote (192902)	9/21/2002 1:46:50 AM
From: mishedlo	Read Replies (1) \| Respond to of 436258

Dumb questions. Just curious. What would the effect be if Japan raised interest rates 2 full points next week (or some lower number if that is far too drastic say 3/4 point if you prefer). Clearly whatever they are doing has not worked. Why not try something radically different. Same question Europe (1/2 point). Same question US (1/2 point). In the Us I presume it would knock housing for a loop (but isnt that gonna happen anyway?). When and how do interst rates ever start going up? Thoughts on a bond crash when interest rates do start rising? Thanks. Trying to figure out the bond bubble (if indeed there is one). M