4 ms·
Private equity bubbles occur when there's not much money to be made in publicly traded companies. This is because there's a capital surplus because of quantitat
by stevenmays 11y ago
Private equity bubbles occur when there's not much money to be made in publicly traded companies. This is because there's a capital surplus because of quantitative easing, and a lower cost to access capital. Everything in economics is cause and effect.
- brownegg 11y agoAll true. Also been true for ~7 years, so maybe it doesn't matter much.
- toomuchtodo 11y agoAt some point, the balloon will get squeezed and all that money is going to rush elsewhere. I don't envy either part of the balloon.
- wmil 11y agoBut will it? The big lesson of 2009 was that ratings agencies aren't trustworthy and investment banks have no problem selling you junk investments. The Dollar Shave Club looks like a prudent investment in comparison. Perhaps it's overvalued, but it's safe from outright fraud.