Berkshire Downgraded, Credit Bubble Collapsing
Fitch Ratings has downgraded Berkshire Hathaway due to current investigations and a lack of clarity as to who will replace Warren Buffet. "Fitch has revised the Rating Outlook to Negative from Stable on the 'AAA' long-term issuer and unsecured senior debt ratings of Berkshire Hathaway Inc. and its wholly owned subsidiary GEICO Corporation." Will there be any 'AAA' lenders left in the US when this is over?
"Berkshire continues to expand the manufactured housing lending operation of its Clayton Homes subsidiary. This expansion was financed through bonds issued by Berkshire Hathaway Finance Corporation that are guaranteed by Berkshire. Berkshire and its subsidiaries engage in both primary insurance and reinsurance of property and casualty risks."
7 Comments:
nayrab,
What these people don't understand is that when a little fear sets in and a certain percentage try to sell, prices will snowball downhill. Your friend is up today, but will he be when he tries to sell? I wish him well.
I don't understand these series of asset bubbles (stocks/real estate/commodities etc...) that have resulted over last so many years. In my opinion, it appears what is happening here is that the U.S. economy can no longer survive via prodiction and savings. Therefore, there is a necessity for asset bubbles to give the illusion of a prosperous economy that does not exist. Tic-toc on this nonsense...
http://www.msnbc.msn.com/id/7558576/
People are still delusional !
"One thing keeping home prices high in hot markets is a lack of supply."
GM and FNM are failing.
http://moneycentral.msn.com/content/P102179.asp
That is an old article.
That's what is soo unnerving. Even the good companies will be hit by the fallout. I call it the fanancial principle of the rotten apples spoiling all the basket. Who is next ? That would be a nice list to have.
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