September 06, 2007 02:08 pm
IMO - It is only a matter of time be fore compannies relying on asset back comercial papper start to go chapter 11. I suspect that many of these companies can not raise any new capital. All they can do is barely roll over what they have with lenders that have no choice but to accept a roll over. Not good in my opinion but when the real crrection comes, it should ressult in one hell of a buying opportunity! JMO
Part of todays Stock House news below:
The credit markets continue to be tight. The New York Fed, which carries out the central bank's market operation, injected a total of $31.25 billion through three repurchase agreements Thursday -- the largest amount the Fed has injected in weeks -- to help keep the markets liquid. The Fed also reported that about 3 percent of asset-backed commercial paper, a type of bond companies sell for quick cash, was unable to be rolled over in the week ended Wednesday.