Sunday, February 1, 2009

Carlyle Group Co-Founder Explains How the US Is Going to Really Get Out of the Current Economic Mess

The generally loquacious Carlye co-founder, David Rubenstein, is not disappointing reporters in Davos at the World Economic Forum.

Mark Kleinman with the UK's Telegraph details a cluster of Rubenstein observations and beliefs that have been thrown out by Rubenstein to those willing to listen. In the body of comments is this gem that tells it like it is:

The only good things for our country [the US] are that we do have the financial resources to deal with it; we do have, for example, the ability to print money: we probably got into this sooner than the rest of the world and we will probably also get out of it sooner than the rest of the world.
I have no reason to believe that Rubenstein understands Austrian Business Cycle Theory, but he sure has the gut instincts to understand, in an ABCT manner, how the whole thing works. Fed money printing is going to turn the economy around much sooner than most expect.

Of course, what baffles me about Carlyle and other PE groups is the waiting game they are playing before they start putting their sizable amounts of capital to work. No one is going to ring a bell when the trough in this downturn hits, but if all these PE groups start putting there capital to work at the same time, you are going to see a huge spike up in price of PE coveted assets.

We are sufficiently close emough to the bottom, given Fed money printing over recent months, that I believe at this point there is much more danger in being too late than too early.

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