Monday, July 2, 2007

Credit tightening up

Mish at Global Economic Trend Analysis points to changing circumstances in the credit markets for the big private equity firms. If this continues the buyout boom on wall street will dry up and a big prop under the market will be gone. That isn't the only prop certainly, but it is an important one. Taking companies private leads to a big reinvestment by the shareholders who have been bought out.

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