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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (44137)	12/31/2003 8:37:13 PM
From: tom pope	Read Replies (2) \| Respond to of 74559

Thanks, Jay, and a very happy new year to you. You always have a different take on things. My only response - not a rebuttal - is that bank lenders never believe that they have had enough. I used to be the Credit Policy guru of a New York bank and I can tell you that the guys on the lending side never learned from their lessons. We wrote off mucho LA term loans that were originally put on a LIBOR+1/4 because "that's the market". Same thing in Real Estate lending. Except there it's always worse, the banks effectively take the equity risk, without sharing in the equity gains.

To: TobagoJack who wrote (44137)	12/31/2003 8:55:36 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

Lets qualify the term savings, Jay. The 'savings' in the Asian context is: Governments export more than they can import. Take the USD they get for their imports, and buy USD denominated paper, thus keeping the USD afloat, in order the US consumer keep coming back. When one look to all the shopping malls and the luxury goods market in any major Asian city, I wonder how they manage to set money aside to save. With the economic activity I see from my window, housing is going up fast, hence this populations are buying them. Which means they are not saving. Now with those inflated economies in Europe, plus their egalitarian instincts and the rapacious governments, any European managing to save any money can be considered a hero!