xanthus4966

High Yield Spreads Near Record Highs

I think this is an ecellent time to go hi-yield. The spread rarely exceeds this level so taking a position now has lower downside than in other portions of this market cycle. With Congress causing us the taxpayer to pay for corporate jets, with no upside potential for us, we now have to increase our risk to compensate for the overall gross equity loss. Long term rates will be significantly lower in three to five years, as the true stupidity of our lawmakers comes out.

Assets and Capital: The Two Major Issues in this Crisis

The root of this problem is the bursting housing bubble. Nobody had a problem as real estate prices went up 40%+ over a few years. Borrowing was simple, banks practically gave it away. Now we have the reckoning of "loose" credit practices, low real interest rates, and a depressed dollar. This isn't the taxpayers fault. Neither me nor any of my clients will pay one dime in income tax to pay for a corporate stockholding investment risk, no matter how broad the effect.

Buffett's Big Bet: The Real Value of the Berkshire Investment in Goldman Sachs

As a conservative who will vote, i am displeased that this "Financial Meltdown" is being notorized as the worst financial crisis since the Great Depression. Sorry to disagree, but this more hype to get the taxpayer to support the longterm economic expansion that has given America its worldwide economic and political clout. (A good idea.) I can't see this even as bad as bank failures from "junk bonds." (Which created more hi-tech jobs.) The lassez-faire premise of leave business alone seems to have gone with hurricane Ike. The investment responsiblility should have fallen fully and completely on those corporate stockholders who bought shares. Their billions disappeared too. Yet the assets are still under corporate control. Forclosures will still happen 100 times more than five years ago because that's economics. Me the working taxpayer are still making more for the upper class than I get to keep myself.