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Friday, August 03, 2007

No Guts, No Glory

It's a rout and a panic for lenders, and it is now affecting the markets. Over 500 billion in loans are just stuck in the clogged financial arteries. Cramer's on-air meltdown didn't help any, and it sure isn't going to help the markets - because CR is correct. This is a risk re-pricing, and cutting interest rates won't help matters. It might well make them worse. The better approach might be to raise rates.

Don't panic. Instead, watch it with a soundtrack. This is a near perfect musical history of this bubble.

And when you get bored watching the indexes fall, you can always read a little.

Your soundtrack songs:
1.Lynyrd Skynyrd: Sweet Home Alabama
2.Kansas: Carry On Wayward Son
3.Boston: More Than a Feeling
4.Tom Petty: Won't Back Down
5.38 Special: Caught Up In You
6.Eagles: The New Kid in Town
7.Fleetwood Mac: Dreams
8.Journey: Wheel in the Sky
9.Lynyrd Skynyrd: Free Bird
Note: Look at HSH weekly trends for real numbers and rational analysis, not Cramer. What's happening is that riskier loan terms are now carrying a much higher interest rate, which is a rational move. When a market can't withstand a solid dose of rationality, that market has a problem.

ed in texas
Glad you're back, hope you had a good sojourn.
Rationality I can deal with. What's been bothering me has been the 'Hollywood' effect, the willing suspension of disbelief. Sort of Fantasy Island on the Hudson.
Yup. And now, the river is on fire a la the 70's!!
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