Private capital is sitting on the sidelines while private equity fund managers collect fees. If the Govt suspended those fees then those lazy managers would have to invest the money. Pre- Crisis the talk was about the investors were on the sidelines. They are still their. Look at the MADOFF scheme. They invested in his Private equity fund. He collected a fee. Thats 50 billion right there. times 15 more funds like his and we see that those private capital managers are hording assets and collecting managing fees. Eliminate fees for non investable assets and those assets will be used up. Use it or lose it.
In the real world there are funds still available and private capital needs to raise a trillion dollars and buy those assets and recapitalize them at 40% on the dollar.
The original post on this board is absolutely correct. We need a real solution. The Washington politicians need to step aside and allow wallstreet to police its own. Force Private equity to step up and problem solved. Take away the inactivity management fees and watch how fast they come back to the market.
Also if they raised the short levels to 7 dollars we would have more liquidity in the market and less downward pressure. In the meantime write down all the assets at 40% loss today and get back to business and let the stocks trade.
In the real world there are funds still available and private capital needs to raise a trillion dollars and buy those assets and recapitalize them at 40% on the dollar.
The original post on this board is absolutely correct. We need a real solution. The Washington politicians need to step aside and allow wallstreet to police its own. Force Private equity to step up and problem solved. Take away the inactivity management fees and watch how fast they come back to the market.
Also if they raised the short levels to 7 dollars we would have more liquidity in the market and less downward pressure. In the meantime write down all the assets at 40% loss today and get back to business and let the stocks trade.
