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

To: russwinter who wrote (52834)	2/6/2006 1:52:42 PM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

The Fed's goal of "full employment" is ridiculous for a central bank. That goal assumes the printing press can guarantee people a job. The critical juncture will be when the economy starts to slow. Big Ben has a choice. Take the medicine now or start the next reflation campaign. If he starts aggressively lowering rates again, I think we can see the dollar get hammered and metals go into the stratosphere.

To: russwinter who wrote (52834)	2/6/2006 1:54:35 PM
From: shades	Read Replies (1) \| Respond to of 110194

"commodities the new tech?", I saw that, my jaw dropped - then they started listing off all these cement companies and such with 3 dollar share price rises today and I wondered what do all these companies know that I am not getting?

To: russwinter who wrote (52834)	2/6/2006 3:41:03 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

It's a whole new way of financing! What's with this nonsense? ======================================================= Companies scramble to exploit 'hybrid' finance Companies around the world are lining up to exploit a new form of financing that cuts their cost of capital and could prove one of the most important developments in corporate funding in two decades. Bankers are predicting explosive growth in a new generation of so-called hybrid securities, creating a potentially lucrative source of fees for investment banks. Companies will increase the amount raised from these securities tenfold to $40bn this year in the US alone, according to some Wall Street forecasts. Investors view the hybrids as long-term subordinated debt, meaning they would rank behind all other creditors in a bankruptcy. The hybrids carry some equity-like risks, such as the possibility interest payments might be deferred, but have no share price upside though investors can gain from early repayment. Analysts at Citigroup calculate that if half the top 500 U.S. companies replaced 5 percent of their capital with hybrids, it would increase their value by $100 billiion, the FT said. The rest of this article is for FT.com subscribers only