Silicon Investor (SI) -- The First Internet Community

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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (6036)	1/23/2004 5:41:50 PM
From: ild	Read Replies (3) \| Respond to of 110194

What High Yields? James Grant, 02.02.04, 12:00 AM ET The average ten-year junk bond gives you less than 6.5%. Meanwhile 80% of junk trades above par, and 63% above the call price. Investors are oblivious to the dangers. forbes.com

To: yard_man who wrote (6036)	1/23/2004 5:47:45 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

White House Threatens Pensions Bill Veto Good god are they finally gonna do something right? Three Cabinet secretaries said they would urge President Bush to veto a widely backed bill to ease pension burdens if it contains provisions giving special relief to airlines and other companies that have fallen behind in their pension payments. Labor Secretary Elaine Chao, Treasury Secretary John Snow and Commerce Secretary Donald Evans said in a letter to Senate Majority Leader Bill Frist that it would be "irresponsible" to enact legislation that "would significantly further exacerbate systemic pension plan underfunding." The three make up the board of the Pension Benefit Guaranty Corporation, which insures the defined pension benefits of 44 million Americans. The letter was made public Friday. apnews.excite.com

To: yard_man who wrote (6036)	1/23/2004 5:48:39 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

From Harmy on my board on Steel Prices This is going to develop into a real witches brew as the scenario of higher commodity prices plays out. The reason for higher steel prices rests on the 20% increase in ore price owing to the fall in the USD. Coking coal has also risen by the same amount for the same reason. Shipping costs have also risen three or four fold and also add to the cost - and the GM twerp is complaining about the price increase. Protectionist policies have allowed US steelmakers to remain complacent and to not upgrade their steel mills. Had they done so they would have been able to take advantage of the latest technology which uses PCI (pulverised coal injection) and which uses far cheaper thermal coal which would have kept costs down. Far from using imported high cost coking coal the US steelmakers could have used indigenous US thermal coal situated right on their doorstep had they modernised their plants. When you add to the higher basic cost of steel, which will feed through to most manufactured products in the US, you also have to add the additional higher fuel costs associated with the dollars fall. You produce steel based items at a higher cost which then have another added cost of the fuel to get the product to the destination. Each step in the process has a multiplier effect which hasn't even begun to play itself out. All these added costs will deduct from the ability of the US to make US exports competitive. There's a long, long road ahead I think. Regards Harmy