All Clowns Must Be Destroyed Message Board

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Pastimes : All Clowns Must Be Destroyed

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To: marginmike who wrote (41876)	10/26/2000 12:56:22 PM
From: Cynic 2005	Read Replies (1) of 42523

Do not underestimate their ability to engineer a short-squeeze - however tiny the remaining short-interest is! So far they are very effective in bringing the indices down fast enough, surprisingly, with most investors fully invested! Thanks to 'quick' short covering rallies! The talk of recession will feed on to itself and becomes a self-fulfilling prophecy! Bond defaults aren't necessarily good for the economy either. <<Behind the financial distress: * Higher costs. The Federal Reserve has boosted interest rates, and oil prices have soared. * Industry gluts. Overbuilding in the steel and movie theater businesses has wrecked profit in those industries and sent bonds reeling. Bonds of steel company LTV trade at half their face value and yield 26.6%. GC Cos., parent of General Cinema, recently became the fifth movie chain to file for bankruptcy protection since May. * Careless lending. Just as the stock market went crazy over dot-coms, the junk bond market in 1997 and 1998 threw money at firms proposing to build local telecom networks. Many of those companies amounted to nothing more than business plans, says Jeff Koch, portfolio manager at Strong Funds.>> cgi.usatoday.com

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