Archive for October 17th, 2008
“Armageddon Prices” and “Historical recovery rates”
This article plainly states that bond prices for junk status companies are selling at prices where “historical recovery rates” would indicate that buyers are virtually guaranteed getting their money back.
What the writers of this article fail to realize is that in a time of historic moves in the equites markets, historic intervention by governments and central banks around the world, is that “historical recovery rates” should be thrown out the window.
Capitalism is dead, a Capitalism 2.0 may arise but it will be much much different, right now we are headed towards intense Corporate Fascism instead(If not already there).
Broke consumer cofidence falls most on record-No way!
The first paragraph says it all:
“Confidence among U.S. consumers fell by the most on record and single-family housing starts hit a 26- year low, posing an increasing threat to household spending that accounts for more than two-thirds of the economy.”
And the cascading continues as things just get started…
