the two bear sterns hedge funds fallling apart so important? There has been SOOOOOOO much news coverage for those two items, but why? I don't see the big deal. There are tons of crappy hedgefunds and I have no clue waht blackstone is (nor do I really care..sounds like more smarty funds) So please inform me?>
Please post a screen shot of your buying power, or else one of your trading blotters so you can prove to us what a teriffic trader you are.
Please post a screen shot of your buying power, or else one of your trading blotters so you can prove to us what a teriffic trader you are.
As to your original question, the same type of subprime problems can occur at other funds/firms causing a huge margin call all at once. "Prime" borrowers could be negatively affected too. With Blackstone, if buyout fever slows down, you could have a big meltdown because so many companies have ~25% takeover premiums built-in to their stock price. If that premium disappeared all at once, you could get a repeat of October-1987. As they say, records are made to be broken.
Private equity is overrated. Only very very few companies are aquirred. I can't see how this can be so critical the the entire market.