Tuesday, May 08, 2007

Links of the day

Great Keynes quote courtesy of Calculated Risk..."A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him."

John Maynard Keynes, "Consequences to the Banks of a Collapse in Money Values", 1931

Another good quote from Calculated Risk...
"People are taking out these loans and they realize they can't make payments on them. The first one they're going to default on is the second lien, not the first lien, because many times a servicer will write off the second lien and not foreclose"...Terry G. Osterweil, an analyst at New York-based S&P, May 8, 2007.

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