Even venture capital is worried. ‘The crazier things get, the worse people execute’
LBO volume plunges to the lowest level since crisis year 2009.
Not everyone is irrationally exuberant.
The price of market manipulation keeps dropping.
Over the long run (which is now), the math of that distortion just doesn’t work out.
The report – released on Friday when everyone was on vacation or getting ready to head out of town, and when no one was supposed to pay attention – was a zinger: US net capital outflows soared to $153.5 billion, the largest ever recorded.
Investors won’t even know what exactly is in the pool.
The good folks with more than $10,000 in the market have spoken.
They’d piled into the new “risk sharing RMBS bonds” issued by Fannie and Freddie. Wall Street provided 80% leverage. Buying frenzy ensued. But it didn’t last long.
The game has been honed to perfection. Everyone is playing along. And it performs miracles. Or it did. Because just now, it inexplicably conked out.