On Mon, 19 May 2008 09:52:01 -0400, "Ed Huntress"
wrote:

If I understand correctly, the banks made the loans to the buyout boys for
the original LBOs; the credit crunch caught the banks in need of cash just
to keep doing business; the buyout targets lost value; the banks are now
holding paper that's worth less money while the buyout boys lost nothing;
and the banks are salvaging what they can by selling the debt at a discount
to the original borrowers (the buyout boys). Is that really right?

If so, I need a couple of Advils.

--
Ed Huntress
============
Now we know where the liquidity the Fed is pumping into the
economy [and taking from the taxpayers and savers through
inflation] is going, in addition to the huge commodities bubbles.

I don't have first-hand personal information, but in general this
seems to be correct from articles in the FT, WSJ and Economist,
proving again the truth of the golden rule, i.e. "when you have
the gold, you make the rules," also stated as "cash is king."

Also don't confuse the banks, and the bankers. While the
commercial and investment banks [and their stockholders] may be
taking it in the shorts, the bankers still have their house in
the Hamptons. their Rolexes, and their Porches, along with their
bonus money salted away in judgement proof trust funds/accounts.

I suggest a large bottle of advil rather than just 2 caplets, [or
even better a large bottle generic ibuprofen -- same stuff but
cheaper].

The following URLs have some information on "debt repurchase"
http://us.ft.com/ftgateway/superpage...20081906440244
http://www.efinancialnews.com/homepa...ent/2450451025
http://www.euro2day.gr/ftcom_en/126/...ticleFTen.aspx
Interesting to read how the banks squeal and whine when this
occurs. Given their recent actions toward their credit card
holders, all I can say "is what goes around, comes around."
http://www.ey.com/global/content.nsf...ity_-_Overview
http://leadsandbids.com/index.php?cm...g/view/id_161/

This does not yet seem to be a widespread practice, and was
mainly one Danish phone company TDC.


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).