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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (169358)	12/5/2008 3:40:09 PM
From: Patricia Trinchero	Respond to of 306849

Thanks for the info!

To: Think4Yourself who wrote (169358)	12/5/2008 5:44:28 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

>>>contracts doesn't mean much in a declining market. Having been through several energy cycles I wouldn't buy them based on that.<<< I have to second that....a thousand times over. Again crying about my Calpine loss days...Calpine had a mountain of debt and a mountain of power contracts with the state of California, the proceeds of which would have serviced that debt beautifully. California decided after the fact that the contract price was too high. You should have seen that puppy turn and run south. Banks don't like to refinance when they aren't sure if a contract is a contract. I don't have too much direct experience with offshore drilling contracts, but the stories are legion. It goes something like this. Yes we agreed to a $150K dayrate. But you see, crude has fallen from $140 down to $43 and we don't have the money to pay you. Sue me.