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

To: UncleBigs who wrote (71412)	10/8/2006 1:39:42 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

The new mortgage guidelines are not something the mortgage lending industry wants. They are more than willing to continue extending credit on the most lax and reckless terms in our history. They dont want them becasue they dont want rules. But evidence suggests that credit tightening had already begun and will continue. Appraisals are getting tougher and tougher and that started well before the new guidelines happened Mish

To: UncleBigs who wrote (71412)	10/8/2006 2:13:11 PM
From: kris b	Respond to of 110194

"Lenders won't voluntarily withdraw credit availability until it becomes unprofitable to extend credit" I don't know what will give first in the current (Total mania. I don't think we saw anything like it in modern times) credit cycle, but in the last one that ended in 1982 it was the banks who saw writing on the wall and stopped lending to the Ponzi scheme. At the beginning of the contraction I was still able to service my debt even at 26% but the bank balked at giving me more money. Maybe this cycle is different/more insane and they will push the drugs right to the point where everybody goes over the cliff together.