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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: MulhollandDrive who wrote (85888)8/17/2007 12:10:41 PM
From: Smiling BobRead Replies (2) | Respond to of 306849
 
The perception that banks are unstable is what could cause the run. Joe Shmoe knows nothing about solvency, liquidity and CDOs. All he hears is that banks, where his savings is, are in trouble.
Rate cuts mean nothing to Joe and won't change a thing overall. Nothing more than a shot of oxygen for the mkt. Bernanke knows exactly what the effect is. It was to save the market from crashing and hopefully to project a strong market.
But it won't hold and they can cut to zero, like BOJ, and get nowhere doing it.



To: MulhollandDrive who wrote (85888)8/18/2007 8:50:16 AM
From: 10K a dayRespond to of 306849
 
>.recall that at the height of their bubble, japanese banks allowed bad loans to remain on their books for years and years, which only prolonged the pain, zero interest rates didn't help and only set up a massive carry trade that is only just now beginning to unwind
<

Yes. Exactly.