Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: russwinter who wrote (17451)	12/2/2004 6:15:19 PM
From: mishedlo	Read Replies (1) of 116555

Without a doubt. I was once a broker for a large national firm, and I remember how they pushed junk bonds in the Milkin era of the late 80's. When it busted, they didn't even make a market in them any more. One day I called checking on marked down bargains that might have a chance of surviving, and there wasn't even anybody in their "once thriving high yield bond dept". Think the janitor answered the phone. I'll never forget that. This current situation will make that era a cake walk. Hell we hsve tons of stuff that should be junk that is not even junk yet. GM and F for starters probably a bunch of telcos too. The stupidest thing is they are paying very little over the treasury rate. With treasuries the concern is how much the $ will be worth when you get them back but much of this stuff that is junk will not even survive. All to get another lousy 50 bps of yield. It is simply insane. Mish

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next