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Strategies & Market Trends : Portfolio Construction -- Ignore unavailable to you. Want to Upgrade?

To: Keith Feral who wrote (600)	9/10/2007 11:44:48 AM
From: Rarebird	Read Replies (1) \| Respond to of 1964

<<The market meltdown was facilitated by the fact there were too many secondary lenders that were repackaging their loans to sell to the banks. All the banks stepped away from their financial support to let the margin calls wipe out all the cash and liquidity of the companys.>> More and more banks are holding back on payments to increase their cash resources. The result is that other banks don't receive the payments they were expecting, leaving them cash short. Cash short banks have to borrow from the interbank system and that rate has been rising. <<Credit problems are set when people stop lending the money. The only question is why the banks stopped lending the money.>> Many Multi-national corporations are becoming affected by this massive event, suffering from late payments from their customers and having difficulties making payments themselves as a consequence. They are forced to seek short-term finance in order to make such payments. The situation is quite serious. But I am looking at a short term cycle bottom early on this week (likely on 9/11): Message 23867576 Message 23854198