default

A report by Fitch just out, spreading some more doom and gloom, after the earlier news of a forbearance being sought by the mall operator which is bankrupt in all but name.

GGP RUNNING ON FUMES ON FORBEARANCES; IDR DOWNGRADED TO "RD"

General Motors, which today received a going concern opinion from its auditors who had somehow missed putting that language into the doomed company's 10-K over the past several years, was much closer to bankruptcy than the general media will have you believe. As a result of the going concern statement, the company was in dire need of an amendment to its credit facility which would prevent this from translating into a full blown event of default as per the old language.

Karl Otto Poehl is pouring some major cold water on all the optimistic talking heads saying eurozone defaults can be avoided. According to the former Bundesbank president, a default of smaller member of the euro region is only a matter of time.

Company reported Core Funds From Operations of $0.72 versus consensus of $0.86.

In an 8-K filing sneaked late on Friday after close, the highly leveraged mall operator General Growth Proprties announced that as a result a termination on February 12 of several forbearance agreements with lenders, and being unable to enter into forbearance agreements for some other loans it is in default under several of its loans. As noted in the 8-K:

After seemingly endless years of wrangling back and forth, Einhorn has finally been vindicated: Allied Capital announced in an 8K today that it was notified by its lenders of a default in its credit fa

Nothing so far today, means two tomorrow.

In the meantime apparently there was movement higher in auto term loans today as the rescue proposals imply government funding would rank junior to existing private financing. Chrysler, Ford and GM all gained 2-3 points in intraday trading.

Also, Bernanke to release Long-Term economic forecasts and present the Fed's long-term inflation goal. Fed says "credit risk in Fed actions exceptionally low." Greenspan used to say bubble risk in Fed actions exceptionally low too...

Terex, the maker of heavy duty off-road and mining trucks, announced earnings last night of $0.62 which actually bear street consensus of $0.54, however this morning the stock is down about 30% premarket on this ominous disclosure in the 8K filed:

Terex, the maker of heavy duty off-road and mining trucks, announced earnings last night of $0.62 which actually bear street consensus of $0.54, however this morning the stock is down about 30% premarket on this ominous disclosure in the 8K filed:

Developing Story:

Developing Story:

Developing Story:

It is always entertaining to listen to Mark "Hogan's Bottom" Haines speculate about implied defaults, recoveries and what not... So we decided to dispel some ambiguity and speculation by presenting a brief overview of what the implied bankruptcy rate is, at least mathematically.

The biggest threat to the U.S. Obama rally and the miracle recovery proposed by Democrats in the $825 billion bail out package may possibly reside about 6,000 miles away in Greece.