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Strategies & Market Trends : Classic TA Workplace

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To: skinowski who wrote (32884)3/1/2002 8:59:01 PM
From: patron_anejo_por_favor  Read Replies (1) of 209892
 
<<My CPA tells me that that’s the way it’s done, and that all parties know about the deal in advance, but IMHO this system is totally crazy. No leveraged growth business has a chance of surviving a downturn.>>

Yep, that's pretty much it...welcome to the wonderful world of New Age...ERRR, STRUCTURED Finance!<NG>

Oh yeah...one more thing...a lot of the leverage that's out there now (put on as debt strapped companies were floundering for liquidity in the downturn) will completely incinerate as soon as short term rates move back up. That's the part that very, very few commentators in the popular media understand, and where the largest systemic risk currently resides. That's where the 2nd (and 3rd, and 4th) dip will come from, IMO.

Got MBI, RDN, FNM, JPM poots?
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