SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: orkrious who wrote (256734)8/20/2003 7:48:27 AM
From: orkrious   of 436258
 
from doug kass

'Pall of Debt'
08/20/03 07:31 AM EDT One book articulates my near-term concerns.
There is excess capacity in almost every industry.


In the solitude of the bus ride back to New York City Tuesday afternoon, I re-read one of the truly worthwhile chronicles of the investment business, Leon Levy's The Mind of Wall Street. Published late last year, the book is a must-read, along with classics like Reminiscences of a Stock Market Operator, The Money Game and Richard Bernstein's Navigating the Noise. In my reading, I came upon the following paragraph. More neatly than I can ever communicate, Leon's words capture my current near-term concerns.

"The posturing would be entertaining were it not for the $7 trillion or so in value that has been wiped out since the market peak, ruining the dreams and retirement plans of countless Americans. There is more to come. My instincts, refined by fifty years of experience in finance, tell me that we are in but the third act of a five-act Shakespearean drama that portends a bad ending.
Stock prices may have plummeted from their dizzying heights, but neither consumers nor investors have yet realized the perils of the suffocating pall of debt hanging over the financial world. Nor have they reckoned with the increasing difficulty of competing in a global market burdened with excess capacity and idled workers in almost every industry. Even at today's discounted prices, the markets have yet to digest that.

The massive tide of foreign money that flowed into the markets in the past decade is ebbing and may begin to flow out, and consumers have only just begun to save more and spend less (a nearly inevitable result of harder times that will drive the last acts of this drama)."

As I said, a must-read from a man who not only "invented" independent research but built two firms (Oppenheimer and Odyssey) into billion-dollar empires.


thestreet.com
subscribers only
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News