General Growth declared bankruptcy. A bunch of speculators bought their bonds at three cents on the dollar. Those same bonds are selling above par and the speculators made a dramatic profit.
Monday, March 8, 2010
General Growth Inc. and why we need a share economy
General Growth, a mall owner and operator, declared bankruptcy--because its bonds and mortgages were for five years and they simply came due. This is why we should not have bonds with fixed maturity dates, only a share continuous stream. This avoids manufactured crises that have nothing to do with fundamentals.