While a fortress balance sheet is appealing in times of crisis, many investors see a massive cash cushion in calmer times as a waste, particularly given the open debt markets for large liquid issuers and the negligible returns from holding cash.
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The two owners would open this tranche of senior debt to other investors for equity warrants.
Rolling Jubilee proposes to purchase consumer debt on the open market for pennies on the dollar just like hedge funds do every day and then find the debtors and forgive their debts.
An open mind about how we allow debt collectors to contact consumers and vice versa can lead to greater communication between the parties.
However, if Oracle can make use of the cash balance to make acquisitions instead of paying off debt, it could open up a lot of strategic opportunities.
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In order to try and stimulate the economy, the United States Federal Reserve System will make good on its plans to employ a policy of monetizing the growing U.S. debt by making significant open market purchases of government bonds.
By keeping interest rates very low, that meant that businesses that had seen consumer demand really shrink were still able to service their debt and to keep their doors open.
And Italy's prospects are being overwhelmed by the contradictions and uncertainties in Brussels, Frankfurt and Berlin, where respectively the Eurocrats, the European Central Bank (ECB) and Germany's chancellor, Angela Merkel, have all vainly tried to follow two contradictory goals namely, avoiding any formal default on Greek debt, while also avoiding an open-ended transfer from richer European countries to the insolvent periphery (see article).
However, optimism for an ECB rate cut was tempered by signs that the ECB isn't prepared to take more aggressive steps to combat the impact of the euro-zone debt crisis, such as ramp up open-market purchases of European government bonds.
The other requirement for steady performance is that the credit markets remain open, enabling high-yield companies to roll over maturing debt.
Secondly, Ravitch stresses that New York must service its debt as a first priority, because it must keep open its acesss to the financial markets.
French politics have been thrown wide open and for Europe's officials - struggling with an unrelenting debt crisis - they have a less certain partner in the IMF.
Important for the market place is also reports that Germany has indicated it is more open to providing funds to any mechanism implemented to get the EU debt crisis under control.
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They reluctantly gave debt authority to Congress, and certainly did not issue vague open-ended powers for any branch of government to accrue unto itself the right to borrow without congressional permission.
Raising the debt limit with no accompanying credible fiscal plan may keep the government open this month, this year or next, but will punch a politically irreversible hole in the hull of our sinking sovereign ship of state.
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Debt investors could also face a hit, as the new legislation might open the door for forced haircuts on holdings.
Cyprus, with revenues following the slowdown in offshore activity, took on more debt rope around its neck just waiting for the trapdoor to spring open.
Everyone out of debt, everyone with the spending power to buy the produced goods that companies need to sell to stay open, everyone with something in the bank to fall back on in the future, everyone with a bit of funds to invest for retirement, and most of all the amount of stress being felt by just about everyone lifted to bearable levels.
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