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Friday, August 17, 2007

I love the message

the fed has sent to the markets.

do anything you want with shareholders and depositors money, no matter how risky or stupid. there are no consequences because we will bail you out.

carry trade?..go ahead..lever it up ten times. who cares?

loan 500 k to someone with a 500 credit score? Shit..make it 600

buy mortgage bonds with no idea of the actual collateral? we suggest you use borrowed money and buy twice as many.

the poor guy with the 2/28 teaser loan is still screwed but the asshole who sold it to him will find enough liquidity to charge someone else 3 points on the front side of a stupid loan.

do what you want.take any risk no matter how ill thought out or downright stupid. at the end of the day we will save you.

this is like punishing your teenage son for wrecking the family car by giving him the keys to a new camaro and a 12-pack.

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