Monday, February 18, 2008
Blast from the past: The heady days before the fall
"The cost of insuring European junk-rated companies against default broke through a psychologically important level on Thursday as bullish investors continued to push risk premiums to new record lows in the credit derivatives market. The sustained rally – which was under way in the last few months of 2006 and has accelerated in the new year – illustrates the extremely positive outlook surrounding the debt markets in spite of concerns over increased borrowings and the potential for leveraged buy-outs." Oh how it has all turned to tears and ashes... Its so incredible how this always happens, we are such a sad bunch, next everyone will be out on strike and the rubbish will be piling up in the streets. Will we never learn?