Thursday, June 18, 2009

Rubenstein Forecasts Tsunami of Bankruptcies

After the initial signs of economic trouble, private equity underwriters (PEU's) overpaid and over leveraged some $500 billion worth of deals. Carlyle co-founder David Rubenstein sees a wave of corporate bankruptcies as a result. He shared his thoughts at the Aspen Global Leadership conference.

Other prognostications include high inflation (4-6%), high interest rates, and a wave of tax hikes. What if the PEU boys paid their fair share in taxes the last nine years? How might things look? Likely not as bad.