Comstock "Awash in Liquidity"

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...If you believe the bull case that all the excess liquidity will have to flow into the U.S. stock market you would have to become bullish and join the fray. On the other hand, we took a look at the transaction of Cablevision that was announced yesterday. The Dolans are in the process of taking over CVC by taking on $15.5 billion of additional debt on top of the $12 billion already on the books. This will increase the debt to $27.5 billion while the total assets are only $10 billion. Is this what is called excess liquidity? ......

We used to go to Mike Milken’s Annual Los Angeles Conference called "The Predators Ball" where LBOs were the "hot" thing at the time. This was when "junk bonds" and other "payment in kind" gimmicks were used to buy up other companies. The companies that were purchased were restructured and either re-sold or went public again. Subsequently, many of these companies were unable to service their high cost debt and the whole picture turned ugly. This is just before Mike Milken went to jail since he did whatever he could to acquire these companies including "parking securities" with friends so he didn’t have to disclose his interest as he was acquiring the shares. .....

All of these prior "excess liquidity" situations by leveraging companies up with debt had an ugly ending, and we suspect this one will not be an exception. Take a look at the attached charts showing "excess debt" not "excess liquidity". ( headline/überschrift)