Brokers Set to Peddle Toxic Assets
Though the market is less sanguine this morning, we are actually encouraged that big corporations are in this rotten environment still making big deals. Coca-Cola felt $2.4 billion was worth risking on a Chinese juice company, though in the end they failed to cut the deal. And IBM is said to be offering $7 billion for Sun Microsystems. A little further down the scale, we see by amNY that a company called SecondMarket is getting set to trade those toxic assets that the government is seeking to unload from the banks they've been obliged to rescue. SecondMarket claims that "buyers and sellers are already lining up" to trade the collateralized debt obligations and other financial instruments that dragged lenders down. Indeed, some big investors have been smacking their lips over them for some time now. This confuses us, but history teaches that you can buy or sell anything in this great land of ours, so why not; one bank's poison may be some investor's meat. Perhaps rapacious capitalism, having done us so much injury of late, may be enlisted to at least alleviate some of the pain.
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