Fixed rate debt is great in a high inflation scenario. But you better be sure that inflation is higher than your interest payments, and will remain higher for the majority of the debt repayment period.
However, given the current situation (low inflation, risk of deflation) I would not be...
Has anyone else noticed how quickly ratings agencies have been to move (specifically downgrade) lately?
My theory is that due to the criticism of the ratings agencies after the financial collapse of their perfectly safe ratings of certain assets, ratings agencies are now more inclined to...
http://finance.yahoo.com/news/China-and-other-countries-buy-apf-1204349531.html?x=0&sec=topStories&pos=6&asset=&ccode=
"China's holdings of U.S. Treasury securities rose by $5 billion to $900.2 billion in April, the Treasury Department said Tuesday. Total foreign holdings rose by $72.8...
Or they claim the country will be OK because they will employ measures for deficit reduction as opposed to deficit elimination.
When you're up to your eyeballs in debt, it's time to reduce the debt, not simply decrease the amount of new debt you incur.
:D no doubt!
Anyone see the German player with the phantom dive yesterday? I'm one of those guys who watches soccer every four years, so I'm not sure if that type of dive is common place in this sport, but man was it terrible! The guy literally didn't even touch him and he went soaring...
Is Exxon bankrupt?
$10 billion would definitely not bankrupt BP. Especially since that $10 billion hypothetical number would not be due all at once. And also, are you forgetting the minority players in this? BP will go after them for a portion of the costs as well.
http://www.bloomberg.com/apps/news?pid=20601010&sid=aD6gtKj9sgxk
Overheating? Or simply soaring to new heights?
On a related note:
http://ca.news.finance.yahoo.com/s/09062010/3/finance-business-china-calgary-oil-show.html
"China out front at Calgary oil show"
"So it's why we...
Put your money where your mouth is and short it then. BP is fucking loaded, they will not go bankrupt. Even if it costs then billions and billions more, they will not go bankrupt. Ever read a financial statement in your life?
I wouldn't say full employment is a requirement so much as an objective. The other mandate is to control inflation. The mandate is there basically to find a middle ground between low interest rates and inflation.
Bernanke has so far avoided deflation in this crisis. That alone deserves...