BizWeek
Bruce Wasserstein: "Expect Lots More Embarrassment":
"Master dealmaker Bruce Wasserstein provides some much needed perspective on the current turmoil "
"Are we through the worst of it?
Many assets still are not yet fully marked to market. That's because for some of these securities, there is no market. We would expect lots more embarrassment in unforeseen places, where some people tried to spike their returns with this paper without regard to risk.
What consequences do you envision as losses are taken?
In the financial institutions market, you will see consolidation. There are firms that don't have a strong core business that basically got their profits during the bull market by being principal risk takers in debt. Those days are over. There will be a lot of pain and a lot of finger-pointing, but I don't think the financial system has suffered a fundamental wounding.
Is the meltdown threatening the economy?
If you look at the big industries, this has nothing to do with health care or food. It's got nothing to do, for the most part, with utilities, or energy, or resources, or technology. The stock market has drifted down, but it's still at a reasonably strong level because the world economy is reasonably strong. Obviously there is a storm, but this is not Katrina."
No comments:
Post a Comment