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

To: jimmg who wrote (76462)	12/22/2006 3:51:41 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

Do you want a central planner over our economy deciding who gets access to credit and on what terms? I suspect if we had one that they would be about as competent as "Brownie" was during Katrina. No i don't want central planner to decide who gets credit. I want free market to do it and not having the booze party underwritten by the government with implicit/explicit guarantees. Would banks be willing to extend credit the way they are if not for banks being able to offload the risk and loans to a government outfit ?

To: jimmg who wrote (76462)	12/22/2006 3:55:39 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

Nobody has asked anyone to bail out insolvent debtors. It's possible that may happen but before it does, the equity holders of the banks will get wiped out first. Short the banks if you think this will happen. You'll be so happy with your short sale profits that you won't care about the bail out. Wrong !!! The insolvent debtor bailout is happening as we speak, it is called inflation running out of control. Don't expect a repeat of early 90's with Bank of New England fiasco. The bailout will take a different form. In all likelihood you will be wiped out shorting banks. What good shorting JPM did in 2002, when it was bailed out ?