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To: Smiling Bob who wrote (150224)	9/25/2008 12:53:11 PM
From: XoFruitCake	Read Replies (1) \| Respond to of 306849

"Those with established credit are unlikely having trouble carrying on business because of this crisis."' But established credit is a relative term.. When LEH went down, all the business rely on LEH for funding just loss their funding source.. And Gross has an interview came out today.. Very long piece and he is talking his book (chest thumbing etc.).. But what he talk about MS loan should shake all of us.. If MS after commitment from Japanese bank to infuse capital has to pay 25% for short term loan (and not getting from Pimco).. How good is a commitment from MS for anyone who establish credit facility with MS?? I think that is the heart of this credit freeze problem... We won't know that the credit is not there until it hit our banks or our source of credit.. So BK for any business is essentially a random chance depending on where you bank.. For us, little investor, market now is full of junior preferred from all kind of business that pay 9-14% (and I am talking about AA kind of buiness) nytimes.com "Even Mr. Gross admits that he has been, at times, reluctant to commit. “We were offered this morning a six-month sizable piece of Morgan Stanley,” he said on Tuesday. “Here’s the surviving investment bank that just last night got equitized or bailed out by a Japanese bank. We were offered a sizable piece of a six-month Morgan Stanley obligation at a yield of 25 percent, O.K.?” "

To: Smiling Bob who wrote (150224)	9/25/2008 2:37:35 PM
From: Pogeu Mahone	Read Replies (2) \| Respond to of 306849

I disagree(Those with established credit are unlikely having trouble carrying on business because of this crisis) =========== BoA denies McDonald's franchise credit freeze Charlotte-based bank calls report 'factually inaccurate', affirms it is not cutting off new or current lines of credit. Happy meals in unhappy economy CHICAGO (AP) -- Bank of America said late Tuesday that it is not freezing any current or new lines of credit to McDonald's franchise owners, despite reports citing an internal memo from the fast-food giant advising franchisees of the contrary. Bank spokesman Larry DiRita said the Charlotte-based bank will continue to honor its obligations to the company's franchise owners who are spending up to $100,000 to remodel and update each restaurant to accommodate the restaurant chain's plans to overhaul its drink options. "It's not for me to speak to an internal memo, but any memo that says we're freezing credit is factually inaccurate," he said. "And in fact, we're honor all of our obligations to McDonald's." On Monday, Bloomberg News reported that McDonald's Corp. sent a memo to some franchise owners advising them to seek other financing options for expansion efforts. A company spokesman declined to confirm that on Tuesday, although analysts at both Cowen & Co. and Deutsche Bank published research notes Tuesday saying said the chain's management verified the information in discussions with them. "There are no credit issues at McDonald's," said McDonald's spokesman Walt Riker, who added that franchise owners have more than 50 other lenders from which they can receive financing. "There continues to be more than sufficient liquidity available to our franchisees to fund capital improvements in their restaurants." Riker said in a statement late Tuesday that the company's franchisees are still working with Bank of America (BAC, Fortune 500). "Bank of America is one of our largest franchisee credit providers and continues to provide loans to our franchisees," he said. The Wall Street analysts also said any credit freezes likely won't affect plans by the world's largest restaurant chain to add espresso drinks, smoothies and bottled beverages to its locations. "While we do not expect yesterday's BofA decision to have any notable impact on (McDonald's) franchisee's ability to grow or to access growth capital ... we nevertheless do see the news as a symptom of the current macroeconomic credit crunch," Cowen & Co. analyst Paul Westra told investors. The analysts said the reported temporary freeze was a sign of the nation's locked-down credit markets - not a reflection on the financial wellness of the franchise owners. McDonald's officials said the chain was committed to the beverage effort. The company, based in the Chicago suburb of Oakbrook, plans to offer espresso drinks such as mochas and lattes by the middle of next year at all U.S. locations while adding a new line o