Goldman, JPMorgan Saddled With Debt They Can’t Sell
July 18th, 2007Come on guys, there are lots of suckers out there.
Via: 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.
The banks have had to dig into their own pockets to finance parts of at least five leveraged buyouts over the past month because of the worst bear market in high-yield debt in more than two years, data compiled by Bloomberg show.
Bankers, who just a few months ago boasted that demand for high-yield assets was so great that they would have no problem raising debt for a $100 billion LBO, are now paying for their overconfidence. The cost of tying up their own capital may curb earnings and stem the flood of LBOs, which generated a record $8.4 billion in fees during the first half of 2007, according to Brad Hintz, the former chief financial officer at New York-based Lehman Brothers Holdings Inc.
Somehow in all of this mess I think there is a wash sale going on between countries re the U.S. This month it looks like Japan is next in line for a big screw job. Hopefully not another Hiroshima.
” Japan, the largest foreign owner of U.S. Treasury securities, increased its holdings by $400 million to $615.2 billion.”
“Caribbean banking centers, which analysts link to hedge funds, sold a net $28.5 billion, bringing holdings to $48 billion.”
Major oil exporters — a group that includes the members of the Organization of Petroleum Exporting Countries, Ecuador, Bahrain, Oman and Gabon — bought a net $9.1 billion of U.S. securities.”
Actually, it is much more foreign “investors” buying the Federal Reserve Banking System/cartel, out, to render them Obsolete and Impotent to a Restructuring which has the dollar and Uncle Sam dancing to a new tune Globally, and one which has them working as labourers rather than lording it as fat cat employers.
It is nothing that they do not need so it is nothing for them to worry about. It just means that fat cats who can’t do anything will go real hungry [if they can survive in the real world] until they learn how to deliver something of value which everyone else wants rather than simply what they desire.
Something better “happen” soon —
The dollar is about to reach technical support levels, and then we’re talking FREEFALL.
USDX is currently at 80.25 and falling…