WHy is the blackstone IPO and

S

stock_trad3r

the two bear sterns hedge funds fallling apart so important? There has been SOOOOOOO much news coverage for those two items, but why? I don't see the big deal. There are tons of crappy hedgefunds and I have no clue waht blackstone is (nor do I really care..sounds like more smarty funds)

So please inform me?>
 
Quote from stock_trad3r:

Mr. copy paste are you gonna use that reply for all my posts?
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Please post a screen shot of your buying power, or else one of your trading blotters so you can prove to us what a teriffic trader you are.
 
As to your original question, the same type of subprime problems can occur at other funds/firms causing a huge margin call all at once. "Prime" borrowers could be negatively affected too. With Blackstone, if buyout fever slows down, you could have a big meltdown because so many companies have ~25% takeover premiums built-in to their stock price. If that premium disappeared all at once, you could get a repeat of October-1987. As they say, records are made to be broken.
 
Quote from nazzdack:

As to your original question, the same type of subprime problems can occur at other funds/firms causing a huge margin call all at once. "Prime" borrowers could be negatively affected too. With Blackstone, if buyout fever slows down, you could have a big meltdown because so many companies have ~25% takeover premiums built-in to their stock price. If that premium disappeared all at once, you could get a repeat of October-1987. As they say, records are made to be broken.
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I heard that.
 
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