July 27, 2007 (LPAC)--Even as a new report by the International Monetary Fund attempts to deny that a serious global credit crunch is underway, big corporate takeover deals were falling apart in Europe and the United States for lack of suckers and fools.

For example, Cerberus Capital Partners takeover of Chrysler is the biggest deal now clearly in trouble. Six big international banks gave up trying to sell $12 billion in junk bond debt to idiot investors, even after the interest rate offered rose over 9%. The banks took losses on $6 billion more, in an attempt to sell it now, according to the London Financial Times.

Also on July 26, eight international banks "threw in the towel" on $10 billion in junk bonds they were trying to sell for the KKR private equity fund's takeover of the British chain store company Alliance Boots, after it was clear that fools could not be found to buy the trashy bonds. The banks did sell another $3.5 billion of this deal, but at such high interest rates that their fees were wiped out and they all lost money, the Financial Times reported. They will lose much more on the debt they are stuck with.

And on the $7 billion takeover of part of Cadbury Schweppes by leveraged buyout specialist KKR, three big international banks-- UBS, Morgan Stanley, and Goldman Sachs--can't even find a financial locust firm to do the takeover, let alone suckers for the debt these banks have created!