http://video.msn.com/v/us/money.htm?g=ED9EF52B-F879-49F7-BF4E-118513976B0B&f=&fg=copy How can I get some...for my lifestyle ... A mess is coming 1998.. LTMC again...
great video, dot com bubble housing bubble credit bubble LBO bubble derivative bubble it cant continue!!!
I loved the part "the borrowers are literally laughing at the banks that are granting them no covenant loans." A no covenant loan, where the bank has no recourse if things go south. What a beautiful thing. Can you blame them for laughing their asses off?
I was reading some quotes by the BofA CEO the other day thinking about how honest the guy was actually being. Nice of him not so blatantly lie like most others! Good vid, thanks.
Look at the Bloomberg story under the thread end of cycle talks about this very situation. Thsi si why many guys that trade in corporates have just stopped playing the game, they just aren't being compensated for this type of risk. Interestingly enouigh the private equity investors are also realizing that too and are demandeding higher rates. This is the road to the liquidity crunch that I think is coming. On a lighter note, I couldn't help but laugh when Faber started talking about his Deep Thoughts. Maybe that stuff passes as deep thoughts for the pop corn and candy channel.
What happened to Faber? Did he burn out or have a meltdown? He looks like he's dosed up on tranquilizers. Not that there's anything wrong with that.
Fat chance we are the guys that who wear the fallout through tighter lending criteria as if joe six pack car loan has any relevance to a massive LBO. It is ridiculous but watch it happen Cheers