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Strategies & Market Trends : Ride the Tiger with CD

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To: tyc:> who wrote (99070)11/18/2007 1:50:49 PM
From: maxncompany  Read Replies (2) of 312983
 
"Do you ever consider the equity supporting the debt ? It is the equity that we invest in, not the debt."

True for Barclays that the equity is much more than the debt. But it is not true for all equities. Look at Ford and GM, where their debt is way, way more than their equity value.

Now, I don't know how this will all play out, but one cannot value one's wealth only in assets, while ignoring liabilities.
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