Wednesday, April 16, 2008

So, uh, things are getting better, right?

That impending financial crisis? Stop worrying about it - the Dow is going back up again. The last major companies to go bankrupt have, and now we can -

Aw, poop cakes - there are more companies about to post major losses and declare bankruptcy:

Similarly, despite assurances that US companies are holding boatloads of cash, what is true in aggregate is not necessarily true on an individual basis. With roughly half the corporate bonds rated at the junk level, it doesn't take much to push them into distress. This Bloomberg article also suggests that many companies facing bankruptcy aren't merely otherwise solid operations struggling with too much leverage, but include businesses that are weak as well as highly geared

The funny thing is, I had a guy tell me *not* to get a 15 year mortgage, to put that money in a corporate bond instead, and I just kind of shrugged at him and said "Nah. I'd rather have my house paid off by the time my kids go to college." Looks like I may be right.

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