[Marxism] How the mighty have fallen

Louis Proyect lnp3 at panix.com
Fri May 6 08:01:57 MDT 2005


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.

As a result, Standard & Poor's announcement at midday yesterday that it was 
cutting its credit ratings for both General Motors and the Ford Motor 
Company set off a selling spree in the corporate bond market. The rating 
cut to below investment grade begins a process of adjustment that could 
ripple through, and roil, the fixed-income markets for weeks.

"It was a Richter-scale event," said Edward B. Marrinan, head 
investment-grade strategist at J. P. Morgan. "The market is selling off 
violently," he said from the trading floor, soon after the announcement. 
"The downgrade was no surprise, but the timing of it was and has caught the 
market on the hop."

full: http://www.nytimes.com/2005/05/06/automobiles/06bond.html

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NY Times, May 6, 2005
Not Much Left to Say for Last-Place Yanks
By TYLER KEPNER

ST. PETERSBURG, Fla., May 5 - Derek Jeter remembers the glory days, an era 
in Yankees history that seems to be gone forever. The Yankees of that 
generation hardly resemble this team, a collection of faded stars who have 
crash-landed in the basement of the American League East.

The Tampa Bay Devil Rays beat the rookie Chien-Ming Wang by 6-2 on Thursday 
night, sending the Yankees staggering away from Tropicana Field. The teams 
are tied for last place, Tampa Bay with its $29 million payroll and the 
Yankees with their bloated, $200 million tab.

full: http://www.nytimes.com/2005/05/06/sports/baseball/06yanks.htm

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