Here's the picture, via tpm, students: Nouriel Roubini and Nassim Taleb had a 3-hour long line to get into their talk at Davos. Who was waiting to get in? Folks like Bill Gates.
Roubini is "famous" now, so CNBC invites him and Tasseb on to the channel. The problem is that either these journalists are too isolated, stupid or brainwashed to understand what Roubbini and Taleb had to say, or they are selling a product (unlimited growth, DOW 50,000!) that just doesn't exist right now. They seem to think there is some sector that will give their portfolios a miracle cure, which is silly. Our problems are systemic.* It's not just banking or insurance or production or demand. It's all entangled and until the finance sector clears its bad assets and can clearly put value on real, physical production (as opposed to circulating mathematical-model hedge funds that relate to no real-world products) then the system will not work. It's really fascinating to watch these clueless people who seem to think that a little cheerleading is going to get everybody through this. (Oh, and they also think that all bankers are geniuses and deserve high salaries for crashing the system.)
Video link
*Of course, there will always be some stock somewhere that makes money. The point is, Roubini and Tasseb are not talking about isolated stocks, but about a whole (screwed up) system.
Showing posts with label stocks. Show all posts
Showing posts with label stocks. Show all posts
Monday, February 09, 2009
Monday, November 20, 2006
Private Investment Funds begin
to really gather steam. This is no longer a phenomenon of microclimates. Here's a snippet from Le Monde today.
It's hard to say, but at some point this could put our stock markets into question, at least marginally. Something to watch, like youtube.
350 MILLIARDS D'EUROS.
C'est le montant total dont les fonds d'investissement disposent aujourd'hui pour investir dans le monde. En Europe, ils ont collecté 72 milliards d'euros en 2005 auprès de fonds de pension et de grandes fortunes. Depuis quatre ans, ces acteurs sont présents dans une acquisition d'entreprise sur quatre ou cinq.3 600 SOCIÉTÉS.
C'est le nombre estimé d'entreprises françaises contrôlées par des fonds d'investissement (soit 6 % de l'effectif salarié du privé) en 2004, selon l'Association française des investisseurs en capital (AFIC).DEUX-TIERS.
C'est ce que pèse la dette dans un rachat avec un montage en "Leverage buy out" (LBO). Les fonds n'apportent qu'un tiers de capital propre.
It's hard to say, but at some point this could put our stock markets into question, at least marginally. Something to watch, like youtube.
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