alt.politics.usa.republican

Video61@ wrote:

>On Jul 22, 9:44 am, alexy wrote:
>> Lisa Lisa wrote:
>>
>> >Goldman, JPMorgan Saddled With Debt They Can't Sell (Update2)
>>
>> >By Caroline Salas and Miles Weiss
>>
>> >JPMorgan logo July 17 (Bloomberg) -- Goldman Sachs Group Inc.,
>> >JPMorgan Chase & Co. and the rest of Wall Street are stuck with at
>> >least $11 billion of loans and bonds they can't readily sell.
>>
>>
>>
>> Whatya bet video61 thinks this article is about subprime mortgages and
>> mortgage-backed obligations?
>> --
>> Alex -- Replace "nospam" with "mail" to reply by email. Checked infrequently.
>
>you read the word junk, correct? many believe like i do that the
>subprime stuff is junk.
LOL! Unfortunately, no one took me up on that bet.

Yes, some subprime mortgages are definitely junk. But when they talk
about "junk bonds" or "high-yield bonds" in conjunction with LBOs,
they are not talking about subprime mortgages.

> besides where do you think they get the capital for the lbo's?
According to the article lisa lisa posted, they are trying to get that
capital by selling debt (high-yield or junk bond debt) in the
companies being taken over, and are finding the market unreceptive.

>selling .'.s? of course, that is what they are doing. except they
>call them bonds.
Since you seem to have your own not-very-well-defined concept of what
an IOU is, it's hard to know whether I agree. Based on my
understanding of IOU, I would certainly agree.

--
Alex -- Replace "nospam" with "mail" to reply by email. Checked infrequently.