David, the current buyout craze is setting the stage for a boom in your business.
On Thu, Mar 29, 2007 at 11:07:43AM -0700, David B. Shemano wrote: > > What is an unearned profit? To the extent it is a product of rent-seeking, I > agree that it is a bad thing. The Hertz transaction was not a product of > rent-seeking. Ultimately, the profit was a result of certain investors > seeing an opportunity that others did not see and jumping on that > opportunity. If it wasn't so risky, there would have been a line of people > out the door to make the investment, but there obviously wasn't. > > There absolutely is a free market for capital in the United States. As a > commercial bankruptcy lawyer, I have little to do right now (and have time to > post to this list) because there is so much goddam liduidity in the market, > investment managers are desperate for deals and are throwing money at > anything that moves. The market for deals is incredibly competitive. I > don't know why Ford chose the transaction it did, but it was certainly not > because there was a restricted number of potential investors. > > David Shemano -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
