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To: reaper who wrote (66332)	2/13/2003 11:47:11 AM
From: Perspective	Read Replies (1) \| Respond to of 209892

MBI: Do you know how overcollateralized those credit card trusts are? The default rates on subprime have been astonishing, and we haven't even really started the recession. Ask yourself: how many of those subprimes are employed in the housing bubble? Construction, furniture sales, auto manufacturing and sales. Yikes. So far the bubble has taken out those best off fiscally - high tech. What happens when the old economy really starts taking the brunt of the punches? BC

To: reaper who wrote (66332)	2/13/2003 11:49:43 AM
From: 10K a day	Read Replies (1) \| Respond to of 209892

i think one of the reasons it's really hard for it to implode (i use MBNA as an example) is they will dink the consumer with their 29 dollar late fee and their 29 dollar insurance fee and their 29 dollar over limit fee but they very reluctant to write it down as a bad loan and take it off the book. so it's just this gigantic pyramid that gets bigger and bigger. and they keep rolling the loans on and on based on the 29 dollar fees added on top. strange game. it's all they know how to do. i think they backed in the corner allah banks in japan not writing down stocks that go to zero.