Saturday, February 7, 2009

David Rubenstein: Asset Bubble Burst Wasn't Balloon, but a Condom

Carlyle Group co-founder David Rubenstein joked with students at Harvard Business School about the credit/asset bubble. FT reported:

In trying to keep the attention of students in a talk on asset price bubbles, he said: "I analogise it to sex. You realise there were certain things you shouldn't do, but the urge is there, and you can't resist."

So the big money boys corporafornicated, stressing the reservoir end. They pounded away for profits, which maximized their executive incentive compensation. Hundreds of CEO's threw quality to the wind. They rode the siren of greed and leverage until their protection failed. The condom burst, drowning Wall Street in their years of greedy seed.

Only the big boys haven't stopped corporafornicating. They still can't resist and Uncle Sam facilities the financial orgy. With a failed condom, the taxpayer is at risk from their spent bodily fluids.