Comments on: So Much For Law And Order http://swgapolitics.com/index/2009/06/10/so-muc-for-law-and-order/ Free Thinking for a Free World Fri, 15 Apr 2011 20:58:11 +0000 hourly 1 http://wordpress.org/?v=3.1.4 By: Tom http://swgapolitics.com/index/2009/06/10/so-muc-for-law-and-order/comment-page-1/#comment-650 Tom Wed, 10 Jun 2009 12:58:44 +0000 http://swgapolitics.com/index/?p=1376#comment-650 I understand completely. I personally think that people will still invest in bonds to some extent, though that will probably be reduced and it will ultimately be much more expensive for the companies themselves. After all, the potential reward has to be higher to warrant taking the risk...of course, that starts to creep more towards stocks volitility and as you say it will turn off many potential investors. As for the TARP money injecting liquidity into the market, you just <em>knew</em> that the government would screw it up, didn't you? ;) I understand completely. I personally think that people will still invest in bonds to some extent, though that will probably be reduced and it will ultimately be much more expensive for the companies themselves. After all, the potential reward has to be higher to warrant taking the risk…of course, that starts to creep more towards stocks volitility and as you say it will turn off many potential investors.

As for the TARP money injecting liquidity into the market, you just knew that the government would screw it up, didn’t you? ;)

]]> By: Bill http://swgapolitics.com/index/2009/06/10/so-muc-for-law-and-order/comment-page-1/#comment-649 Bill Wed, 10 Jun 2009 12:41:54 +0000 http://swgapolitics.com/index/?p=1376#comment-649 Tom, Many conservative investors, especially the elderly, use bonds at their primary investment vehicle because they are more stable than stocks. This decision by the Supreme Court puts bond holders in the back rather than first if a company goes belly up. That will cause many bond investors to rethink that safety. If they don't trust the bond market, they won't invest. If they don't invest, companies cannot get the money they need to operate. Hey, wasn't that the reason we needed the TARP funds--to free up liquidity in the market? What a mess! Tom,
Many conservative investors, especially the elderly, use bonds at their primary investment vehicle because they are more stable than stocks. This decision by the Supreme Court puts bond holders in the back rather than first if a company goes belly up. That will cause many bond investors to rethink that safety. If they don’t trust the bond market, they won’t invest. If they don’t invest, companies cannot get the money they need to operate. Hey, wasn’t that the reason we needed the TARP funds–to free up liquidity in the market? What a mess!

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