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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (83155)	8/14/2008 9:38:05 AM
From: SouthFloridaGuy	Respond to of 116555

Mish, it's not unprecedented for PE firms to invest in banks, Japan is a good example in 1997, and it did help. The PROBLEM is, that PE firms are bargain hunters. They are not going to buy these assets for 90 cents on the dollar, they want 10 cents on the dollar, just like what happened in Japan. Once difference, in addition, is that PE firms are nursing their own problems as you mention. On the left side, they cannot get leverage, on the right side, the primary markets are closed and the secondary markets trade a steep discounts. I wonder if Bernanke understands this. I don't think he does. I'm not sure what he understands other than lowering interest rates and monetizing debt like a Monkey. Hell, give me the job, I could do the same thing!