Banks and auto sector got bailed out, are telecom providers next?

I kid you not: Pensions got killed in the bailouts of the banks, except those that got insurance from AIG that bet against all the shenigans of Wall St. But sure enough AIG flops because it can't cover all the insurance bets it made on the mortgage backed certificates floated around the world to Pensions and other funds and so the government rescued them anyway. If they didn't theose Pensions would have really been in a world of hurt. As we all have found out, there are Pensions that got hurt anyway because they never covered their risk with an insurance stop loss like some did with AIG.

And guess what, which groups are major stake holders in Telecom companies.. yep, your pensions.

The debt loads for some of them is leveraged beyond historical levels that many analyst have been raising questions about. So far, none of the companies face liquidity issues and none are forecast to be in the short term. But the total level of debt may hamper how much capital spending telecoms allocated for future maintenence, upgrades and operations over the next several years.

Doug; Posted by: doug.hanchard@... Posted on: 10/27/09 You are currently: a Guest | Members login | Terms of Use