Wednesday, May 13, 2009

Carlyle Group's Rubenstein "Worst is Behind Us"

Carlyle Group co-founder David Rubenstein told Bloomberg the worst of the recession is probably over. The story reported:

“The worst is behind us,” Rubenstein, 59, said in a Bloomberg Television interview in Washington late yesterday. “By the end of this year we should see positive growth.” Companies owned by his private equity firm have experienced “some pick-up” in revenue as orders increase, Rubenstein said.

“I cannot say it is overwhelming yet, but there are some positive signs,” he said. “I have a much better feeling about the economy today than I did a year ago, or so or six months ago. By early next year, we will see enough growth to make people feel the worst is truly behind us, and we are really making progress towards growing the economy again.”

Fourth quarter 2008 should be an easy comparison. If recovery can't show in late 2009, things are serious. Assuming Rubenstein's prediction is accurate, recovery removes pressure to regulate private equity underwriters (PEU's). President Obama sees PEU's as an integral part of the solution.

Signs, signs, everywhere a sign...