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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (44841)	7/23/2003 1:57:34 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 57110

>>it is my opinion that it will take years to work the excesses out of the system.<< are you saying just like japan? there are similarities but also significant differences. at least in the u.s. the attempt has been made to write off debt in a timely fashion, yet there are still companies going to the bond markets for cash infusion to keep their heads above water.....and there seems to be no limit to the amount of investors willing to pay a premium for "safety" there is no way i would be a bondholder at this juncture.

To: Jorj X Mckie who wrote (44841)	7/23/2003 2:36:57 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 57110

actually, the time to do nothing was before the refi boom happened. Bad ending ahead, I fear. Debt is still debt, even at low rates. You gotta have $$$$ coming in to pay it off. Even strong inflation, devaluing that debt, does not help if you have no income. In fact, it makes things worse. Now, no matter what they do, it is my opinion that it will take years to work the excesses out of the system. Likely. It will take awhile to force that excess capacity into bankruptcy. But, on the other side, if someone buys it out of bankruptcy at one cent on the dollar, they still need demand to make their investment pay. Otherwise, the capacity must be scrapped. Probably the fate of much of the fiber out there. By the time there is sufficient demand to employ it, it will likely be obsolete. Just in case you ever need it: :-) "The Best Places To Go to Prison" forbes.com zonder need not worry about this; Monaco won't extradite. :-)