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

To: George K. who wrote (82802)	6/17/2007 5:49:07 PM
From: stan_hughes	Respond to of 110194

Precisely -- it's lever up or get taken over. Thanks to PE firms and cheap money, it's a game of Corporate Raiders on steroids "why should we bother maintaining triple A debt ratings if private equity guys can buy us out and run eight times the debt?" .

To: George K. who wrote (82802)	6/18/2007 12:46:55 AM
From: patron_anejo_por_favor	Respond to of 110194

>>He pointed to another item being discussed in public corp. boardrooms -- why should we bother maintaining triple A debt ratings if private equity guys can buy us out and run eight times the debt? Yikes.<< Yes, that or get inferior paper "insured" by an undercapitalized entity like MBI. Risk offloaded to Pluto, where it belongs....<VBG> Seriously, the private equity debt bubble will follow close on the heels of the home lending bubble. Weak underwriting always bites you in the arse eventually.....