GM & Ford debt lowered to junk

[LEX]

When one realizes the BIG LIE behind socialism, communism, and corporatism (work hard now, AND WE PROMISE we'll take care of you when you are old and frail) and takes control of their own future fate, they are finally living in the present, self reliant and not dependent, and have the ability to transform themselves from peasants to feemen.  Its been that way since the first wage was paid to the guy pulling stones to build the Pyramids.  Too bad few ever truly get it until its too late.

 

[BUM]

My response to that is the same as when I read science fiction or a cookbook:

"Like that's gonna really happen...."

REW, 19 days to eR

REW, (Close enough to shed the "anabe")

Slightly premature congrats as ER looms so very near! When I was in your position I prayed, "Lord, please don't take me NOW". So we'll be looking for the big post on 5/27 or 5/28

Altogether now "The best is yet to come..."

BUM

 

[Mr._johngalt]

I don't recall any in-depth discussions about serious junk bond
investment. A kind of Sanford and Son portfolio, if you will

Re. GM/Ford "junk" debt, we're Milken it to death IHMO.

JG

 

[laurence]

I don't recall any in-depth discussions about serious junk bond
investment. A kind of Sanford and Son portfolio, if you will

Re. GM/Ford "junk" debt, we're Milken it to death IHMO.

JG

Snort! You kill me, JG!

 

[cute fuzzy bunny]

 

[Michael]

I don't recall any in-depth discussions about serious junk bond investment.

The long term return of Vanguard's junk bond fund tends to lag that of its investment grade intermediate term bond fund. Defaiults more than balance the additional interest. If I were to buy junk, I would buy a fund to diversify my risk, and buy when the economy was in the tank to maximize the odds of capital gains. Of course, this is also the best time to load up on equity, which tends to outperform junk.

 

[boont]

If I was Kerkorian and owned a ton of GM stock and I heard that GM was about to get a Junk Bond Rating I would....

Notify the SEC that I was going to buy a few Billion Dollars worth of GM Stock. This would cost me nothing.

I would then wait for the news media to promote my announcement to buy.

This would cushion the Junk Bond rating announcement several days later.

This is called "protecting the pot".

b.