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

To: Jack of All Trades who wrote (69047)	8/29/2006 1:14:20 PM
From: yard_man	Read Replies (2) \| Respond to of 110194

>>. Many of the deals for equipment we have been doing is with bank financing, where in the past banks would not give these mfg'ers the time of day let alone a line of credit for equipment purchases... << Banks are in the business of loaning money and have to follow the fizz?? can it be that simple?? the recent reports of the big finance banks have all said -- "we don't care spread, it's different this time" I think that's baloney and say "we'll see" What do you think makes banks more willing to lend for the purchase of mfrg equip now than in the recent past?? Are they just thinking we are past the cycle?? What's the reasoning?? Is it enough that mfrg equip is seeing better price increases?? How much do you think herd mentality plays in such "upgrades?" Company x sees company y buying new equip based on its internal forecast -- company x posits they have a more optimistic forecast and therefore must know something, etc? (maybe rates too low for long time -- have distorted things so much that rate increases which bite the home"owner" -- they aren't enough to give the proper signals to mr. mfr -- i.e. rates really need to be higher for mr. mfr to get the "right" signal)