What goes around, comes around, pt. 1

I’ve written before about the credit crunch, most recently in a six part review of Charles R. Morris’, The Trillion Dollar Meltdown. I’ve also mentioned my love of irony a time or two.  So this article in the LA Times just seemed too funny to be true.  The LBO industry is in deep trouble.  Of course, so are we because of it but that is the other story.

. . . some experts predict that buyout funds launched in the last two years will generate poor returns because they overpaid for the companies they bought and some of those companies will run into deep problems if the economy keeps weakening.

This seems to me more proof that the wizards who run these top funds are no smarter than the ordinary home buyers who somehow convinced themselves that the hype they were creating by buying and trading up was true and the ride up the roller coaster slope would never head down.  Oops!  Overpriced and now the search is on to find a buyer before they lose anymore equity.

Advertisements

1 Comment »

  1. […] of my state of mind.  If you could read my mind that is.  About three paragraphs, ending with a self-satisfied smirk of a summary.  I couldn’t sit there without breathing any […]

RSS feed for comments on this post · TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: