H L Quist - The Myth Buster

Our FEATURE today focuses on the coming financial crisis we discussed last week and the new evidence just received that overwhelmingly supports this theory. Specifically, Daniel Arbess stated that "A debt crisis takes place when markets underwrite and buy too much bad debt". The title of an article in the Sept 19th edition of the Wall St Journal is "OFFERING SHOWS APPETITE FOR RISKIER DEBT". Blackstone Group raised $13.5 Billion in financing to acquire a 55% stake in Thomson-Rueters unit which is one of the largest  sales of speculative debt. The authors go on to say that this financing is "reminiscent of deals seen in 2006 and 2007". The debt is rated B-. We also discussed the corp stock buy backs and how this $ 1 trillion in cash has provided a massive boost to share prices. Regulators announced this week that there will be a "FREEZE" on buy backs beginning October 5th. A sure sign that some officials are concerned about market imbalances. Other topics include: The "Lend & Pretend" Puerto Rico bond