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To: skinowski who wrote (76801)6/28/2003 11:15:56 AM
From: SwampDogg  Read Replies (1) | Respond to of 209892
 
Totally agree...

Investors just have to ask themselves whether a company like GM will actually ever pay off that debt. Nations have been able to carry forward huge amounts of debt but corporations can only do it for so long. You would think that companies would have been decreasing debt during the "good times" and during periods of low rates but they have gone the other way. It is stunning that the GM deal was oversubscribed to the extent that it was.

Debt will be turned into equity eventually. There is no other way out over the long run.



To: skinowski who wrote (76801)6/28/2003 1:11:32 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 209892
 
true but the FED and the administration will not let it happen.

Keep in mind that pension funds and insurance companies rule the financial markets



To: skinowski who wrote (76801)6/29/2003 5:02:32 PM
From: NOW  Respond to of 209892
 
deflation would definitely be preferable: it is opposed because it weakens the political power structures.