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To: Think4Yourself who wrote (75813)	3/9/2008 1:29:49 PM
From: Sunny Jim	Respond to of 116555

What the investor world got fooled on is that lenders are no longer lenders. They are simply broker conduits that passed loans on to others. So where's their incentive to make sure that loan would be repaid? Doesn't exist. In good ole times, a bank made a loan and did their homework to ensure that they would get repaid. If the loan defaulted, the bank lost. That model is rapidly vanishing. One thing that comes out of this mess, and a lot of people aren't convinced that it's that big a mess yet but time will tell, is that our Congress will come up with their own regulatory solutions just like they did after the 1929 mess. Watch for all kinds of laws regarding lending and securitization of loans, and derivatives might get thrown in there before it's all said and done.