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Did U Think The Ponzi Scheme Would Last? » Comments » CAT

  • Caterpillar: Bringing Home the Gold [View article]
    "CAT has a decent balance sheet. "

    Do you even know what that means?

    35 billion in debt.
    2 billion in cash.
    Forget the book value because deflation makes it a fantasy number.

    How is CAT going to roll all that debt over as it comes due? If they are not planning a massive share offering right now for this purpose, the company will likely BK in the next 3 years as depression sucks the life out of residential and commercial construction equipment expenditures.

    CAT is hugely leveraged and you also have to consider that they are a shadow bank. The borrowed short (bonds with sub 10 year maturities) and lent long (20+ year loans on construction gear). And those they sold the gear to (is is really a sale if you loaned them the money?) are now going bankrupt. CAT will get stiffed and it will stiff its bondholders.

    This will end badly for anyone invested in CAT.
    May 03 21:26 pm |Rating: +1 -1 |Link to Comment
  • The IBM Industrial Average [View article]
    Desperate spammers on SA. Everyone is an expert now. This will end badly.
    Feb 05 21:24 pm |Rating: 0 -4 |Link to Comment
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