Private Equity Solutions

The opinions expressed in Private Equity Solutions are my own and do not necessarily reflect those of posts on stock and bond investment I put here. I often wonder I would simply stop thinking in a place someday if living in a wisdom island. But I was wrong, that is the perfect post I got by now.

Don't wait too long, this might be over before you know it.

Does anyone know how we got into a position where a few large institutions (Standard and Poor's, Moody's) tell us how reliable a given security is? John Quiggin makes the point that after the subprime collapse, those companies have got to go. My (undeveloped) instinct would say that "in the long term," the interest rate should reliably signal the risk of a security; hence the rating agencies would be superfluous. I'm sure there are reasons why that's wrong, and Quiggin may in fact hint at .. click here.

I should also introduce my friends to take a look at of this:

I've been writing quite a bit about the gradual collapse of our systems of banking and finance over the past year, so it figures that when things finally started to pick up speed I'd be away from the Internet and unable to blog about it. In case you somehow missed it, over the weekend, Bear Stearns, one of the largest investment banks in the world, collapsed. A few months back its stock was trading well over $150 per share. On Thursday it closed ..next.

They said:

Further comments on the liquidity crisis, credit crunch and sub-prime market will go unpublished on this blog. Why? Well my new employer is a global professional services firm that has many clients and prospects impacted by the downturn in the global economy. Thus fear of being dooced will keep commentary on specific companies to a minimum. That said, I can't believe that Bear Stearns was sold to JP Morgan Chase for $240million. Even when you factor in the two failed Hedge Funds, the company ..next.

These arguments about stock and bond investment really influence my decisions.