Friday, July 27, 2007
It s spreading fast
The writing was on the wall, the various Blackstone flotations, but I am surprised how quickly this is unwinding. There is a lot of hubris in private equity that tons of value can be created through financial engineering. Well, true also that there is a lot of dumb money around. All in all, I am glad some of these plugs will be pulled before irreversible damage is done. Some funds will have to return money to the investors. That's life. Better than having lost the investors' money.