Friday, March 16, 2007

It's Raining Beefers

Sheesh. Blackstone, KKR, Carlyle talking about IPOs. Sounds like it's going to rain beefers. What hogs!

I suppose combined with the CNBC trading contest & the jester & college students talking about trading & Business school students talking to hedge funds, we have to wonder what type of bubble is getting set up to blow up in a year or so. My guess is a beefer-hedgie-private equity-money manager-Street-trading blow up. Together they represent the entire money management industry.

A massive shift back to indexing would kill them all.

I'm open to other ideas.


Bud said...

Bunkerman I'm a bit confused. What exactly is the connection between a KKR ipo, cnbc trading contest and biz school graduates going to work for a hedge fund. Huh?? Private equity is but another extremely valuable source of funds in our capital markets. The cnbc trading contest is a gimmick to generate ratings and hence increase profits for the network (and GE shareholders). And no one is sticking a gun to the head of graduates to go work for a hedge fund. Rofl indexing. Never gonna happen. Face it.....'beefers' and private equity are here to stay ( and so are gimmicks to enhance viewership).

Bunkerman said...

I see them all connected as signs of excessive "investment" in the money management industry. The "investment" is both actual capital and human capital. Over-investment in industries leads to excess capacity & cyclical downturns. That's part of the business cycle. Time will tell. It might have another year to run, but at some point there will be a painful shakeout in the money management industry, imho.