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« 'Gone, Over, Toast.' | Main | Suddenly More Pressing »

December 01, 2008

Cliffs and Moon-Shots

One of the most striking features of the current economic environment is the number of charts and graphs of statistical, price or other data that depict cliff-like drops or moon-shot-like jumps. Today's example, highlighted by Jan-Martin Feddersen, publisher of the immobilienblasen blog, can be found in a post entitled "Number Of The Day: 'Percentage Of US Companies With A Junk Rating."

This at the start of a deep and long recession...... After the events of the last 3 month it is valid to wonder how much of this debt will get bailed out ( GM....) or will end up without much disclosure on the Fed´s balance sheet......I wonder how many companies are now on the brink of bankruptcy just because they decided to make big debt financed stock buybacks or megalomaniac takeovers & buyouts......

WSJ Junk-Bond Market Has Closed the Door
Yields Upward of 20% Make It Too Pricey for Borrowers; Zero Deals Made It in November

About 50% of U.S. companies have below-investment-grade credit ratings, making the $750 billion junk-bond market a vital source of financing for car makers, airlines, retailers, utilities, restaurant chains and media companies

>The next chart is making things even scarier........ Within the "junk" label the remaining "quality" has deterioting fast and furious especially over the past few years..........

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Comments

good charts; illuminating

Look at CANADA it has completely fallen apart today, a coup possible. Economic Depression at its best!
http://www.thecomingdepression.blogspot.com

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