Business

We are confident that the first thing readers will be curious to look for in Greenlight's latest just released first quarter letter is David Einhorn's take on his investment in the now bankrupt former hedge fund hotel, SunEdison. Einhorn's spares no self-criticism here: "SunEdison (SUNE) collapsed from $5.09 to $0.54. In January we negotiated with the company to add an independent director to the board. Unfortunately, and to our surprise, the patient was already in terminal condition.

Authored by David Hay, via EvergreenGavekal.com,

"Low interest rates cause secular stagnation: they do not cure it.” -CHARLES GAVE

 

“Negative interest rates are the dumbest idea ever.” -JEFF GUNDLACH, the new “King of Bonds”

 

“Laugh but listen.” -WINSTON CHURCHILL, addressing the British House of Commons, warning it once again of the rising threat posed by Nazi Germany, to derisive laughter.

When we last looked at the soaring default rate among junk bonds issuers just two weeks ago, we noted that the $14 billion in defaults had already pushed the April total to the highest since 2014, while the first quarter was the fifth highest quarterly default total on record.

But it was the stark deterioration within the energy space that we said would promptly push high yield bond defaults within the troubled sector to hit all time highs in very short notice.

China data weakens, Puerto Rico defaults, Japan falls, crude drops, another E&P company defaults, failed M&A deal, US macro data dumps... and stocks surge...

Submitted by Lance Roberts via RealInvestmentAdvice.com,

According to the World Economic Forum, the United States has achieved a new TOP 10 ranking. Tell us what we’ve won Bob:

“Coming in at #10 – the United States, at 104%, gets nothing but the privilege of being on the list of countries with the highest debt/GDP ratios.”