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Greece is not the new Lehman, and the current environment is "not even close" to 2008, Frank...

Greece is not the new Lehman, and the current environment is "not even close" to 2008, Frank Holmes of U.S. Global Investors says, noting that corporate balance sheets remain strong and 700-plus companies in the S&P 1500 boast Y/Y revenue growth of 10% or more; during the bottom of the cycle in 2009, only 179 companies grew that fast.
Comments (7)
  • wolverine27
    , contributor
    Comments (412) | Send Message
     
    i agree the current environment is not 2008 . however , dismissing the greek default and the credit freeze that follows is dangerous.

     

    mr holmes is long everything ....the bond market does not lie . its telling us pain is coming our way.
    5 Oct 2011, 05:06 PM Reply Like
  • jeffz
    , contributor
    Comments (158) | Send Message
     
    Frank Holmes needs your money to prop up his U.S. Global Investors, because it is DOWN big YTD..I'll be shocked if he says otherwise..
    5 Oct 2011, 05:10 PM Reply Like
  • David Settle
    , contributor
    Comments (2) | Send Message
     
    How many S&P 1500 companies were in that scenario in early 2008 - which is more similar to the current market environment than early 2009.
    5 Oct 2011, 05:23 PM Reply Like
  • bonehead69
    , contributor
    Comments (212) | Send Message
     
    And back in early 2008, the rhetoric from all these guys was oh so similar. "Profits are strong, the economy has never been better" and so on. They consistently pump the economy and corporate growth statistics as if to be sincere. I truly believe that these late day rallies and moves against bad news are "big" money manipulation to exact a means of exit for an otherwise catastrophic loss in their extremely large long positions. They know, as I do, a serious developed market economic stagnation and a new stronger leadership role for the emerging markets is inevitable.
    5 Oct 2011, 05:55 PM Reply Like
  • nobby73
    , contributor
    Comments (1177) | Send Message
     
    As I recall, most corporates in 2008 were in pretty good shape balance sheet wise (except the highly leveraged ones), but like 2008, the problem is with the banks, sovereigns and most importantly the consumer.

     

    A golden rule is a business is only as strong as its customers....

     

    On another note, I believe it is the defensive posture of the corporate sector, doing everything to keep the balance sheet healthy which has meant that any attempts at stimulating the economy through monetary policy has failed, because there is no transmission mechanism...
    5 Oct 2011, 06:08 PM Reply Like
  • yoguh12
    , contributor
    Comments (74) | Send Message
     
    That is because Greece ISN'T Lehman....it is just the first piece to fall in a big splash in Europe and then globally.
    5 Oct 2011, 07:37 PM Reply Like
  • wolverine27
    , contributor
    Comments (412) | Send Message
     
    italian yields are starting to climb ...too bad the eu cant borrow bens printing press.

     

    i cant believe how inept and slow the eu has been toward this problem .there out to lunch .
    5 Oct 2011, 11:07 PM Reply Like
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