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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jmiller099 who wrote (86836)	9/27/2008 5:57:29 PM
From: Dan3	Read Replies (1) \| Respond to of 116555

Re: they'd probably feel more comfortable to loan against this new cash. There would be no new cash to loan against - it would have been spent to pay down debts. As far as lending more to people who haven't a chance of paying it back - don't you follow the news? There is a lenders "strike" going on right now that's resulted in a liquidity crisis. Not only aren't the lending to people who can't pay them back, the banks are refusing to lend to people who are excellent credit risks - that's what this whole thing is about, it's the whole point of the exercise. And you're saying the risk with what I proposed is that the banks will become more willing to lend - that's exactly what everyone's trying to achieve.