Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Earlie who wrote (160515)	4/17/2002 3:28:30 PM
From: patron_anejo_por_favor	Read Replies (1) of 436258

<<Yes, the initial wave of lay-offs has relented a bit, but it hasn't gone away. Yes, the average J3P has gone out and bought a zero percent financed SUV with the bucks he jerked out of his home equity through a Fannie-financed "refinancing" of his house, but his "savings" remains negative and his debt load is historic. Yes, corporations are meeting the (hugely reduced) analysts' expectations, but the reported results underline an earnings collapse and the corporate debt loads are becoming "unserviceable" as the profits evaporate (no wonder Moodys is downgrading huge bundles of debt paper every few weeks).>> The twin debt loads (corporate and consumer) will be a drag on equity markets for YEARS to come. People say there ain't a housing bubble? Well, someone's pouring somebody's clownbux into all those new homes being constructed, and that represents debt that will be paid at the expense of equity investment (and consumption) for the next 30 years in most cases. Not that it's necessarily a bad investment (though personally I believe it might be)...but it represents a long term asset allocation shift away from stocks at the very least

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