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Archive for September, 2011

Do Credit Ratings Mean Anything Anymore?

Tuesday, September 27th, 2011

Standard & Poor’s downgraded U.S. debt, removing the coveted AAA rating in early August.¬† But, the U.S. treasury has the ability to set tax rates and print money – unlike securities backed by subprime loans which often times¬†have¬†maintained a AAA rating.

Make sense to anyone?

Apparently not. 

Since the downgrade investors have purchased U.S. debt, further lowering its yield (even though it is now more “risky”) – below¬† the yield on better rated, AAA commercial mortgage backed securities.

Dreamliner of Nightmareliner?

Tuesday, September 27th, 2011

Boeing has $16 billion of 787 Dreamliner unfinished inventory on its books.¬† This inventory will eventually¬†be completed and sold, but (more…)

Oops!

Friday, September 16th, 2011

Netflix raised their prices by as much as 60% and (more…)

One Share: One Vote, but Who Cares!

Saturday, September 10th, 2011

Many directors at many companies are keeping their¬†positions despite (more…)