[One of the world's largest investment firms believes the financial system is overly leveraged.
"We are in the middle of an epic credit bubble, in my opinion, the likes of which I haven't seen in my career in private equity," Joseph Baratta, The Blackstone Group (BX)'s global head of private equity, said Thursday night at the Dow Jones Private Equity Analyst Conference in New York City. "The cost of a high yield bond on an absolute coupon basis is as low as it's ever been."]
Epic credit bubble, the likes of which I haven't seen in my career in private equity. LOL, what were we in 2008?
Anyhow Brky, duh key "take away" word here is "middle", which is code for it's time to buy buy buy!!!!! Bernanke is a Hero!! Hank Paulson is a Hero!!! Turbo Tax Timmy is a Hero!! Shiela Bair, is a, eh, not so much!!!!!
in 2008? A liquidity lockup. In the meantime, the Fed is sucking up commercial paper, and households are still paying down debt.
The net effect? Blackstone can't buy 40 cent dollars by sticking somebody else with 40 cents worth of debt.
And even with that FHA needs bailout money. Wait intil rates go back up and wheels come off. This entire economy is a sham. Over 3.5 trillion on the FED's balance sheet and no end plan. This is how societies crumble. Now we have to listen to our President babble on about the problem being the Rebublicans not increading the credit limit on the drunken sailor's credit card. What a pathetic understanding of econmics. Oh ... wait a minute. He said raising the debt limit is irresponsible when he was a Senator. So I guess he is just a big fat liar who is using Obamacare and gov't spending to consolidate power in Washington, DC. Just like his favorite presidents Lincoln and FDR. They are all really bad for poor people and yet they claim to be protecting and helping them so they can get the vote. I will take Heny Ford and Steve Jobs over FDR and Obama any day. Commander in #$%$ is what you should call him for stealing you purchasing power and making you buy gov't insurance. It will all end up being run by the gov't. Mark my words.