Can't resist posting this before holiday begins:
[...]let’s also not forget that the spoils of the boom that preceded this bust were on a mind-boggling scale and were largely pocketed by a few thousand hedge-fund owners and investment bankers. Many of those have cashed in tens of millions dollars each and are barely bruised by the recent turmoil.
For most participants in this market, the moral is pretty clear: they all got rich, and never mind the current mayhem. When a semblance of normal service is resumed, why not do it all over again, but perhaps with even greater gusto?
What’s more, where there is mayhem, there is opportunity. The smarties at Goldman, Morgan Stanley, Barclays Capital and the others are expected to coin it from clearing up the mess they in part created – through a business euphemistically called “restructuring”.
And they, plus the hedgies, have been raising lots of new capital to buy distressed financial assets, whose distress was caused by… yeah, you guessed it. Read more
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