A conversation about the economy with Bill Ackman, major investor and hedge fund manager of Pershing Square Capital Management LP, Kate Kelly of The Wall Street Journal, Andrew Ross Sorkin of The New York Times and Joseph Stiglitz, economist and a member of Columbia University faculty
The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. ~Jesse Livermore
Without getting into a discussion on healthcare and its politics, one reality of our soon to be new system is the inevitable further rise in government spending that is headed to 25% of US GDP from its long term average of about 20%. In order to finance this, there will be a smaller private sector and as a result, there will be slower economic growth as nothing is for free. Should the average P/E ratio over the past 100 years of 15x still apply going forward or should there be a revaluation of the multiple paid for US corporate earnings?...
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April 28th, 2009 at 10:05 am
The note worthy item that I took away was Kate Kelly’s comment about there being less competition between the broker dealers with Bear and Lehman gone. Allowing the dealers to name their price in a way.
April 28th, 2009 at 10:44 pm
More importantly, why was Kate Kelly so damned concerned about what Goldman Sachs thought about her “tin cup” comment? Is that how it works outside the blogosphere — kid gloves for Goldman, tough talk for everyone else?