Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Five Things You Need to Know: Cheap (With an Exclamation Point!)!; So Far, So Good; Zero Down, Levered Up; We're Really Pushing China's Buttons!, Three Words: Talking Urinal Cake

By

What you need to know (and what it means)!

PrintPRINT

Minyanville's daily Five Things You Need to Know to stay ahead of the pack on Wall Street:

1. Cheap (With an Exclamation Point!)!

Money is cheap, says BusinessWeek!

  • This week's cover story in BusinessWeek takes a look at the incredible benefits of cheap money!
  • Money is cheap, the magazine says, and according to some experts it could stay that way for years!
  • Incredibly, that's the third consecutive sentence we've concluded with an exclamation point!
  • Make that, fourth!
  • Ha, fifth!
  • We could go on, but you get the point; this is a bullish (sorry, we mean BULLISH!!!) story.
  • While the word "risk" is used five times in the 2,085-word story (hey, that's a ratio of .002%, almost the same level as the CBOE Volatility Index (VIX)), it is clear from the tone of the piece that the reporters had a tough time finding anyone willing to put a damper on the orgy of benefits surrounding cheap money.
  • Consider this sobering note:
    "Easy money is creating all sorts of economic benefits. Corporations are making capital investments again-and with their borrowing costs so low, profits are still zooming."
  • And this cautious comment:
    - "A combination of globalization, innovation, and good old-fashioned competition among markets has made it easier and cheaper to raise and deploy money."
  • Or this grim-faced, dire warning:
    "Borrowers now can draw funds from around the globe. And derivatives let financial institutions and traders manage their risks with mind-blowing precision."
  • Sure, it would be easy to read the BusinessWeek piece and think, "Wait a minute, in some ways, it's the 1990s all over again."
  • It would be easy to read the piece and think that because it actually says that in the eleventh paragraph: "In some ways, it's the 1990s all over again."



CLICK HERE TO READ THE REST OF TODAY'S FIVE THINGS!

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE