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Subject:  Re: Completely OT, but gotta ask Date:  9/26/2008  7:50 PM
Author:  spl241 Number:  28375 of 37117


Didn't mind a bit! It had such authority and specificity that I read it twice. I still don't understand some of it: my head's spinning from all the acronyms. But this snip really nailed down the whole domino effect for me:

If banks can't borrow from each other, they don't have the easy access to funds which makes it safe for them to lend to consumers or businesses. If consumers and businesses can't borrow from the banks, then they not only can't expand, or hire more people, or buy a bigger house/car, but there's also a much bigger chance of them going bankrupt. If people can't re-finance their mortgage, or companies can't re-finance their debt, then they'll default on it. If that happens, generally the people who lent them money in the first place will take a loss. As a result, they'll have less money to lend to anyone else...

TMF is fortunate to have such a well-versed insider such as you.
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