Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (3129)	11/23/1997 2:37:00 AM
From: Bill Harmond	Read Replies (2) \| Respond to of 27307

>>But, if they have [taken loans from cash strapped banks], they will be asked to pay off the loans that they have not defaulted. This "capital crunch" that lead the US banks to restrict loans in the US during 1989-90, causing recession here. No one can force a borrower to pay off a loan if he's meeting the terms. It's a contract protected by law, and no borrower would sign a note allowing the lender to call the loan earlier than agreed. That's a recipe for widespread financial ruin. The US capital crunch in 1990 was the result of tightening qualifications on new lending. No one with an outstanding performing loan was told to pay it off. Rolling a non-amortized loan over was, of course, a different matter.