Monday, July 18, 2011

What should happen to Blackstone who took �1Bn out of the Residential Care system?

Interesting question. But there is a problem. You see, people like to cherry pick capitalism. They love the housing market when values rise every year. They love it when they can borrow more and more money against that rising asset at ridiculously low interest rates. But when the housing market falls suddenly they don't like that part of capitalism. Yet that is a dictate of capitalism, markets rise and fall. Most people would love if they could do what Blackstone did, carve a nice deal and make lots of loot. But when it is being done to your granny....maybe it don't look so good. The truth is people are very ambivalent about capitalism...which is why the fat cats get away with it now and will continue to do so in the future. Nothing will happen to Blackstone.

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