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


To: Jim McMannis who wrote (36255)7/18/2005 12:28:16 PM
From: ild  Read Replies (1) | Respond to of 110194
 
<<<I can't believe lenders would be so liberal if they were on the hook for all these loans.>>>

I have two considerations.
Banks can't resist manias. I.e. if one single bank stops making loans it will have to close the shop.
Biggest banks are public companies, so the only thing their officers care about is their stock options. They sell today and will get new options when prices plunge.



To: Jim McMannis who wrote (36255)7/18/2005 2:59:35 PM
From: Crimson Ghost  Read Replies (1) | Respond to of 110194
 
I do not know exactly who bears the risk now , but there is no doubt that banking system exposure is minimal compared with other entities -- hedge funds, pension funds, Federal Mortgage Agencies, and mutual funds