Barron’s, 2007: “Against this troubling backdrop, it’s no wonder investors are worried the bull market might end in 2008. But Wall Street’s top equity strategists are quick to dismiss such fears.”
Home prices hit a slick $1,000,000, while soaring office rents blow up enterprises with real business models. It’s crazy. It’s powered by hot money from around the world. Then comes the moment when the hot money evaporates.
35,000 M&A deals will likely be made this year, promising “efficiencies” and “synergies,” hence job cuts. So Microsoft, which bought Nokia’s handset unit, is planning the largest in its history…. The M&A frenzy of 2007/8 was followed by the Great Jobs Crisis!
Wearable camera-gadget maker GoPro doubled in the days after its IPO. The media went gaga. But last week, it began to tank, just before Barron’s calamitous article.
Senior bankers are “privately warning” that the record bank lending binge “should not be seen as evidence of an economic recovery.” Instead, they’re fretting about the greatest credit bubble in history.
