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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (27994)	3/7/2005 12:58:50 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

John, when 100% of the Arizona S&Ls failed, when 99.99% of the Texas and California S&Ls failed (only joking on the latters) no deposits of under $100k went unpaid. My point being that while debt was wiped out for the original lender and borrower, the cost of this wipe out was picked up elsewhere. Sounds like you are familiar with that period. You may recall that loans and assets were sold in bulk by RTC at discounts that these weekend get-rich-quick seminar people can only dream of. The deficiencies were made up by the taxpayers via funding RTC. My point being that the debt was cleansed by transferring most of it to taxpayers.