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CAwireman
ParticipantLooks like Tuesday’s losses were 146 points on the DOW.
http://www.thestreet.com/s/late-selloff-slams-stocks/markets/marketstory/10371214.html?puc=googlefi
$78 a barrel oil and AHM seemed to be implicated in the downward movement today.
HiggyBaby
ParticipantLooks like Tuesday’s losses were 146 points on the DOW.
http://www.thestreet.com/s/late-selloff-slams-stocks/markets/marketstory/10371214.html?puc=googlefi
$78 a barrel oil and AHM seemed to be implicated in the downward movement today.
HiggyBaby
ParticipantOther reflections on the deal:
http://www.bloggingbuyouts.com/2007/07/30/what-blackstone-is-doing-to-travelport/
And this:
http://usmarket.seekingalpha.com/article/42866
Thomas Tan
“PE firms are getting more and more short term lately. In the good old days, PE firms more focused on improving the acquired firms long term. They took a long time to aim (improve) then fire (sell). These days, PE firms fire first before aiming, seeking a very quick cash-out. In such short term, there is no way to improve the company materially, and what they do is basically to jack up both sides of the balance sheet, increasing asset and liability, then cashing out on the asset and dumping the liability to the public by IPO. The problem is during an unfriendly credit tightening market like now, the public is holding the bag of those low quality and risky bonds while the PE partners are cashing out with vast wealth in hand.”I wonder when/if laws could be passed to minimize this type of dealmaking? It would have to be part of a global effort, which makes it next to impossible….
HiggyBaby
ParticipantOther reflections on the deal:
http://www.bloggingbuyouts.com/2007/07/30/what-blackstone-is-doing-to-travelport/
And this:
http://usmarket.seekingalpha.com/article/42866
Thomas Tan
“PE firms are getting more and more short term lately. In the good old days, PE firms more focused on improving the acquired firms long term. They took a long time to aim (improve) then fire (sell). These days, PE firms fire first before aiming, seeking a very quick cash-out. In such short term, there is no way to improve the company materially, and what they do is basically to jack up both sides of the balance sheet, increasing asset and liability, then cashing out on the asset and dumping the liability to the public by IPO. The problem is during an unfriendly credit tightening market like now, the public is holding the bag of those low quality and risky bonds while the PE partners are cashing out with vast wealth in hand.”I wonder when/if laws could be passed to minimize this type of dealmaking? It would have to be part of a global effort, which makes it next to impossible….
HiggyBaby
ParticipantHLS,
I’d like to get more loan info if that’s your occupation.
Feel free to drop me a message with your contact information at: [email protected]
HiggyBaby
ParticipantHLS,
I’d like to get more loan info if that’s your occupation.
Feel free to drop me a message with your contact information at: [email protected]
HiggyBaby
ParticipantIs this the Ticker website?
http://market-ticker.denninger.net/
market-ticker dot denninger dot net
I’ll have to have a peek.
HiggyBaby
ParticipantIs this the Ticker website?
http://market-ticker.denninger.net/
market-ticker dot denninger dot net
I’ll have to have a peek.
HiggyBaby
ParticipantRadelow,
I have to agree with you.
And at the same time, it puts hundreds or thousands of people out of work. Though, in many cases the company is flagging anyway and needs to be restructured.
Though, there are some examples of profitable companies caught in the crossfire.
I didn’t realized that the equity gravy train had begun to grind to a halt until just recently. But, there are still lots of deals going through all the time, or at least until last week.
He who has the gold makes the rules.
HiggyBaby
ParticipantRadelow,
I have to agree with you.
And at the same time, it puts hundreds or thousands of people out of work. Though, in many cases the company is flagging anyway and needs to be restructured.
Though, there are some examples of profitable companies caught in the crossfire.
I didn’t realized that the equity gravy train had begun to grind to a halt until just recently. But, there are still lots of deals going through all the time, or at least until last week.
He who has the gold makes the rules.
HiggyBaby
ParticipantPsteach,
No one can answer your ultimate question – What’s the market going to do?
You have to base your decision on what you believe it will do.
Your choices, among others, might be:
1) Sell your house (after 9 years you ought to have some equity) and rent a 4 or 5 bedroom place until you can buy a larger home. Invest your gains in CDs until you find a place. Don’t waste it on cars or other things…..
2) Do nothing and deal with limited space. Your kids will eventually grow up and move out leaving you with more space. Foot the bill for a nice hotel for visiting parents, let other visitors pay for the hotel themselves. Or, let them sleep in the living room on roll-away beds, or whatever if they are willing to. I like this choice, but I’m cheap and don’t care if people know it. 😉
3) Remodel and enjoy the extra features. Realize that it won’t boost the resell value much if at all. It will be a warm fuzzy feeling that benefits you and your family, but won’t be something you can capitalize on otherwise.
4) You could also move out of your place, rent it to someone else, and rent a larger place. This preserves the ownership in your existing home, but gives you the benefit of a larger living space. And you could conceivably do it for no additional cost if you get a good deal on a 4 bedroom rental for yourselves….
Good luck and congratulations on having been in a house for 9 years, and not being subject to concerns of recently purchased property, or having to wait out the RE bubble to buy in the future.
You are in an eviable position, so don’t make a hasty decision, and don’t overlook options like 2 or 4 above. Avoid squandering your solid standing as other greedy or erratic folks have done. Good luck PSTeach!
HiggyBaby
ParticipantPsteach,
No one can answer your ultimate question – What’s the market going to do?
You have to base your decision on what you believe it will do.
Your choices, among others, might be:
1) Sell your house (after 9 years you ought to have some equity) and rent a 4 or 5 bedroom place until you can buy a larger home. Invest your gains in CDs until you find a place. Don’t waste it on cars or other things…..
2) Do nothing and deal with limited space. Your kids will eventually grow up and move out leaving you with more space. Foot the bill for a nice hotel for visiting parents, let other visitors pay for the hotel themselves. Or, let them sleep in the living room on roll-away beds, or whatever if they are willing to. I like this choice, but I’m cheap and don’t care if people know it. 😉
3) Remodel and enjoy the extra features. Realize that it won’t boost the resell value much if at all. It will be a warm fuzzy feeling that benefits you and your family, but won’t be something you can capitalize on otherwise.
4) You could also move out of your place, rent it to someone else, and rent a larger place. This preserves the ownership in your existing home, but gives you the benefit of a larger living space. And you could conceivably do it for no additional cost if you get a good deal on a 4 bedroom rental for yourselves….
Good luck and congratulations on having been in a house for 9 years, and not being subject to concerns of recently purchased property, or having to wait out the RE bubble to buy in the future.
You are in an eviable position, so don’t make a hasty decision, and don’t overlook options like 2 or 4 above. Avoid squandering your solid standing as other greedy or erratic folks have done. Good luck PSTeach!
HiggyBaby
ParticipantArticle was Friday July 27
HiggyBaby
ParticipantArticle was Friday July 27
HiggyBaby
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