Regarding private equity funds, I can't quantify it, but it is a given assumption in my line of work (chapter 11 reorganization) that the equity funds are loaded with cash and there is way too much cash chasing too few good deals. As a result, a lot of companies that should be liquidated are getting bailed out, but that is probably just delaying the inevitable.
Regarding to where the money is coming from, my assumption is that it is a reflection of the USA's huge trade deficit. Foreigners, instead of buying USA goods with the dollars they receive for the goods shipped to the USA, invest the dollars back into the USA, where they money filters through the economy as investment capital. I assume this is occurring because the foreigners believe the USA is a better place to invest than outside of the USA. Go USA! David Shemano
