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alstry (35.87)

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February 22, 2008 – Comments (7)

Merrill paying around 10% for equity injection.

Citi paying around 10% for equity injection.

UBS paying around 10% for equity injection.

Hospital systems paying over 12% for short term money.

Port Authority of New York paying 20%.

 

YOU THINK YOU ARE A BETTER CREDIT RISK THAN THE ABOVE?  HOW MUCH WILL YOU BE PAYING SOON?

7 Comments – Post Your Own

#1) On February 22, 2008 at 9:06 AM, chk999 (99.98) wrote:

Not much, I work very hard not to have to borrow money. I want compound interest working for me, not against me.

Although if rates get really high it will be time to buy some muni zeros and maybe some stripped treasury zeros to hold to maturity. 

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#2) On February 22, 2008 at 9:39 AM, camistocks (< 20) wrote:

I just paid less than 4% for 6 months to do whatever I want. That's in Swiss Francs. 1 month would have cost me less than 3.5%.

You just pick the bad guys and project it to the whole economy... Some people have difficulty getting credit and must pay more, and some are being thrown money at...

That's called a market.

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#3) On February 22, 2008 at 9:46 AM, alstry (35.87) wrote:

My friend, if you call the above the "bad guys," what do you think you are?

And just because you just paid x, y, or z.............so were the above just a few weeks ago.  Now Miami is being forced to furlough its court employees.............and the system is backed up already............................do you see a pattern developing?

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#4) On February 22, 2008 at 9:57 AM, camistocks (< 20) wrote:

Well I'm definitely not a "nice" and conservative guy. Regardless, I have been granted these terms. 6 months ago I had to pay more than 4%.

Sure, some municipalities will probably even have to fire people and also raise taxes. They took bad decisions during the good days and now it's payback time. Again, that's not representative of the whole economy.

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#5) On February 22, 2008 at 9:59 AM, alstry (35.87) wrote:

My friend, if you call the above the "bad guys," what do you think you are?

And just because you just paid x, y, or z.............so were the above just a few weeks ago.  Now Miami is being forced to furlough its court employees.............and the system is backed up already............................do you see a pattern developing?

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#6) On February 22, 2008 at 10:30 AM, alstry (35.87) wrote:

If "some" municipalities are going to have to fire people, and companies are not hiring, does that mean more  foreclosures and less taxes coming to the municipality?  Does that mean even more people have to get fired?

What business are you in?  Do people support your business?

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#7) On February 22, 2008 at 12:53 PM, camistocks (< 20) wrote:

Well some municipalities might go bankrupt, so what? Some people will be pi**ed, no doubt. And if it might get too bad the government will step in. 

How many tens of thousands other munis are there out there who have no problem? (BTW, I know, the bears will say "none"). 

I'm in the business of making and preserving money over the long term. Of course, I could get it wrong...

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