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The 'other' shoe...

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_nova
Super Contributor
on Bloomberg... "Feb. 3 (Bloomberg) -- Corporate debt defaults may cost U.S. life insurers "substantially" more than losses on securities linked to subprime, Alt-A and commercial mortgages, said Eric Berg, an analyst at Barclays Plc. Corporate defaults are poised for a "significant" increase this year as the recession deepens, Berg, based in New York, said in a research note yesterday. The American Council of Life Insurers estimated the industry, led by MetLife Inc. and Prudential Financial Inc., holds $1 trillion in corporate debt"
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3 REPLIES 3
kwagga
Super Contributor
Well, no real surprises there. We all knew the US have been driving their economy on debt for many years. Now we see how and where that debt was financed...and so the US cookie crumbles.
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Brazen
Super Contributor
Ya Nova. That's what's worrying - the DOW is on critical support and the fundamentals are terrible. And I know the theory is that all the news is in the price, but what worries me is another horrible surprise from somewhere no one is expecting.
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_nova
Super Contributor
I tell you Brazen, the probability of another 'orrid surprise is almost a given. The flat bottom triangles on the DOW and S 'n P are glaringly obvious and I think a lot of analysts are watching it closely since we're in the back third of it. 'Ole Murray is quite right, if 8000 fails on the DOW we will probably see 6000. But a topside breakout at around 8900 will see us up to 10000.
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