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: Mike Johnston who wrote (75945)	12/18/2006 8:41:15 AM
From: Paul Kern	Read Replies (2) \| Respond to of 110194

Either they are losing their minds, "smell" something coming this way or have some inside info regarding future government policy. My bet is, it is one of the last 2, they would not be doing this if they believed we are about to enter recession/deflation. Or the big money is making the same mistakes it made in 1998-99 when the M&A frenzy was at its' last peak when no price was too high for assets until it was. EDIT: Anyone here remember Time Warner paying $150.00 a share for AOL and the street hailing it as the smartest deal ever?

To: Mike Johnston who wrote (75945)	12/18/2006 10:04:33 AM
From: John Vosilla	Respond to of 110194

'..they would not be doing this if they believed we are about to enter recession/deflation.' I would imagine most expect much higher interest rates down the road and are are locking in generational low cost of capital for the debt. Makes the ROE look much better for the next cycle.