UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: yodaorange Big red star, 1000 posts Feste Award Nominee! Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77697  
Subject: Re: NY Times Warns Junk Bonds Getting Junkier Date: 11/2/2012 7:07 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 9
You guys just DON'T GET IT! You take enough junk bonds from enough different industries, locations and maturities and combine them into a fund. When you put them together it diversifies the junk risk away. Junk becomes as good as GOLD, AAA Rated! Moodys/SP/Fitch AAA ratings can't be far away!

Wall Street proved out this business model with sub-prime mortgages. It worked out . . . . wait a minute. . . great for Wall Street and a disaster for anyone holding the paper. . .

But Ben and the Fed want my widows and orphans to invest in "risk assets." I am 100% confident, Ben will take care of us this time around.
Ben promised us that a nationwide downturn in residential real-estate was "highly unlikely." I am sure he will give us that same promise with these junk bonds.


What could go wrong? I am all IN!

Thanks,

Yodaorange

(In case you are not a regular around these places, this post is tongue in cheek. I strongly think some of the junk bond holders will end in tears. Not a recommended investment at the current low interest rates.)
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Related Boards
Real Estate Investing
This is a great board for Real Estate other than REITs.

Buying & Selling a Home
Get your personal advice about mortgages, agents, etc. here.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement