Wednesday, July 25, 2007


After a terrific start out the gate, the sellers have once again regained control.
This here says it all.

Banks Postpone Chrysler Funding Plan

Investment banks raising funds for the turnaround of Chrysler Group postponed a
$12 billion debt offer after investors balked, so they will now fund the bulk
themselves to keep the automaker's sale on track, people familiar with the
matter said Wednesday.

Deals are getting harder to fund as investors are getting cold feet from the subprime blow up and CDO defaults. While the Chrysler deal is still on track, a lot of other deals are likely to fall apart in the coming days and weeks. The driving factor in the move up in US equities has been the record number of buyouts. These buyouts have fueled speculation and run ups in the stock price of similar companies. As these buyout deals fall through the crack, equities as a whole will suffer.

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