Blackstone’s Steve Schwarzman says it’s a wonderful time for buyouts. Henry Kravis too says private equity isn’t dead. It may not seem all that obvious, but these guys have a point – valuations are dropping right along with forecasts, which will in part make up for the fact that nobody can borrow like they used to. Further, I think this will play well with the middle-market buyout houses too – I’m sure there are a lot of business out there which the owners (often the founders) would trade a pile of liquidity for right about now.
Of the top performing branded pages on Facebook, only two are really brands. I take that back – if you are selling Barack Obama or Homer Simpson collectibles, you should be jumping for joy right now. And not to be outdone by the furious ‘business competition’ (read: frivolous attention mongering) which always exists among venture-backed startups, Facebook itself is the 8th ranked branded page on Facebook.
Les Jones asks what if we had inflation, and nobody showed up for the party? The hyperinflation question is being bounded about, and at the same time so is the deflation meme. I suspect that when and/or if the dollar takes such a whacking that an iPod costs $1,000, people are just going to quit buying iPods. Same goes for TVs, autos, etc., although they’ve pretty much quit buying most of that stuff already. I think the tougher question regarding which way prices go is whether or not the US can provide its own staples – a gallon of milk at $20 would be a real problem.
New York, London, and Tokyo are replaced by Nashville – Merle Hazard is the new king of country. Moral Merle is tuned to CDOs, LBOs, and over-the-counter derivatives, and often plays at Hamptons hotspots with Arthur Laffer.