Gross sounds like a socialist this time ...

[Spartacus]

http://www.pimco.com/LeftNav/Feature...ugust+2007.htm

It's almost grind the rich into dogfood time ...

OK, not quite ... ; )

[metalman]

Re: Gross sounds like a socialist this time ...

http://www.pimco.com/LeftNav/Feature...ugust+2007.htm

It's almost grind the rich into dogfood time ...

OK, not quite ... ; )

[friendly_jacek]

Re: Gross sounds like a socialist this time ...

http://www.pimco.com/LeftNav/Feature...ugust+2007.htm

It's almost grind the rich into dogfood time ...

OK, not quite ... ; )

It sounds like you didn't read the whole article. BTW, his took resembles the Itulip teaching (ie impending Ka).

[bill]

Re: Gross sounds like a socialist this time ...

Gross: No longer will double-digit LBO returns be supported by cheap financing and shameless covenants. No longer therefore will stocks be supported so effortlessly by the double-barreled impact of LBOs and company buybacks. The U.S. economy in turn will not benefit from this tidal shift and increasing cost of financing

http://www.bloomberg.com/apps/news?p...0Y4&refer=home

KKR Banks Fail to Sell $10 Billion of Boots Loans (Update2)

By Cecile Gutscher and Edward Evans
July 25 (Bloomberg) -- Kohlberg Kravis Roberts & Co.'s banks, led by Deutsche Bank AG, failed to sell 5 billion pounds ($10 billion) of senior loans to fund the leveraged buyout of Alliance Boots Plc, two people with direct knowledge of the deal said.
KKR's eight underwriters will offer higher interest rates to sell 1.75 billion pounds of junior loans, said the people who declined to be identified because the discussions are private. The banks will keep the senior loans on their balance sheets, the people said.
The New York-based leveraged buyout firm led by Henry Kravis, which for the last five years benefited from falling interest costs, faces resistance as losses from record defaults on U.S. mortgages make investors wary. Chrysler, the unit of DaimlerChrysler AG, today abandoned plans to sell $12 billion of loans to complete its purchase by Cerberus Capital Management, according to investors who were briefed on the decision.
``This is a high watermark -- it's the first time a FTSE 100 company has been taken the private and they can't seem to sell the debt,'' said Stephen Mostyn-Williams, head of smwlaw in London, which advises investors on leveraged debt.
Nick Jansa, a director in capital markets at Deutsche Bank in London, declined to comment. KKR spokeswoman Deborah Walter wasn't immediately available.
At least 35 companies postponed or restructured bonds and loans in the past five weeks as borrowing costs rose.
Higher Interest
KKR and Stefano Pessina agreed to buy Nottingham-based Boots, the U.K.'s biggest pharmacy chain, in April. The firm and its underwriters last week extended the period for investors to participate in the deal, and held out the possibility of better terms.
The banks, which also include JPMorgan Chase & Co. and UniCredit SpA, will sell 1 billion pounds of so-called second- lien loans, which rank after senior debt for payment, said a banker involved in the deal. The banks will sell the loans at 96 percent of face value, using their own fee income to pay for the discount, the banker said. Investors are being offered interest at 425 basis points over the benchmark London interbank offered rate, up from 400 basis points three weeks ago.
The underwriters also plan to sell 750 million pounds of mezzanine debt, loans that rank lower than second-lien, at 95 percent of face value, the banker said. Interest will increase to 650 basis points over Libor, from 600 basis points three weeks ago, the banker said.
``It's certainly a bad signal to the market,'' said David Watts, a strategist in London at research firm CreditSights Inc. ``It not only makes private equity more reluctant to do deals but also the banks. Banks don't want to be stuck with the bridge loans. You're not going to want to stick your neck out.''
To contact the reporters on this story: Cecile Gutscher in London at cgutscher@bloomberg.net ; Kabir Chibber in London at kchibber@bloomberg.net .
Last Updated: July 25, 2007 12:22 EDT

[jk]

Re: Gross sounds like a socialist this time ...

i recommend jeremy grantham's latest, available at gmo.com [registration required but no fee]. he, too, talks about the political implications of skewed wealth distribution, plus a lot of other stuff.

[rabot10]

Re: Gross sounds like a socialist this time ...

i recommend jeremy grantham's latest, available at gmo.com [registration required but no fee]. he, too, talks about the political implications of skewed wealth distribution, plus a lot of other stuff.

Bla Bla Bla same old stuff

[jk]

Re: Gross sounds like a socialist this time ...

Bla Bla Bla same old stuff

you can watch cramer if you want different stuff. or for more thought provoking, but still different, [bullish] stuff, i recommend gavekal's the end is not nigh.