I think a better title would be: why are we pumping up the next bubble with debt rather than equity? I don't really worry about Goldman Sachs or Facebook. They

I think a better title would be: why are we pumping up the next bubble with debt rather than equity? I don't really worry about Goldman Sachs or Facebook. They are both best of breed and they handle themselves very well. The real danger here is that we are entering an era where risk capital is being financed through the debt, rather than the equity, markets. This is entirely inappropriate as most risk capital is lost and the 10% or so that does return is supposed to make up for the other 90%. Can you imagine how bad the current financial crisis would be if 90% of real estate was not just underwater but completely worthless?