From: Louis Proyect <[EMAIL PROTECTED]>
NY Times, May 6, 2005 Junk Ratings Make a Big Splash, Ripples to Follow By JONATHAN FUERBRINGER
Many investors knew it was coming, but they did not expect that two of the nation's biggest issuers of bonds would be reduced to junk status so soon.
[But the real punchline of this story is the excerpt below, which perfectly embodies the speculative mindset and its ability to wring riches from ruination. Pure essence of Milo Minderbinder.]
... But while yesterday's announcement may have cut some into Wall Street profits, the credit rating cuts were something that the Street had been happily anticipating, because it is another moneymaking opportunity.
"The potential for it to be profitable because of added trading volume and volatility is huge," said one top trader at a big investment bank just weeks ago as he prepared his troops to profit. ...
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Carl
