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Private Equity

What Is Causing the Drag?

Michael Farr | Posted 11.21.2014 | Business
Michael Farr

Using inflation-adjusted numbers, we indexed each component of GDP to 4Q07 levels, beginning with a value of 100 for each. We graphically display the results below, followed by some commentary.

Deleveraging Has Not Yet Run Its Course

Michael Farr | Posted 11.06.2014 | Business
Michael Farr

I've argued for some time that the process of deleveraging has yet to run its course. The aggregate level of debt in our economy currently stands at a record high, even though many pundits continue to say that debt levels are much more manageable now as compared to the pre-crisis days.

Going Against the Flow: Bastiaan Janmaat, CEO & Cofounder of DataFox

Charu Sharma | Posted 11.03.2014 | Business
Charu Sharma

Bastiaan is the CEO and Cofounder of DataFox Intelligence, a company and sector intelligence platform backed by Google Ventures. Prior to launching Da...

What Oil Is Telling You

Michael Farr | Posted 10.31.2014 | Business
Michael Farr

The drop in oil (and corresponding drop in energy stocks) is causing much consternation throughout the investment world because it is inconsistent with the narrative articulated by most economists.

Beyond Carbon: Althelia Climate Fund Attracts Conservation Investors

David Bank | Posted 10.24.2014 | Impact
David Bank

ImpactAlpha -- Multiple cash flows. Clear environmental benefits. Enhanced rural livelihoods. Strong local partners. Guarantees against losses. ...

Should You Sell???

Michael Farr | Posted 10.17.2014 | Business
Michael Farr

The growth of the American and global economies are the underlying drivers for most all equity investments. A clear discipline, dogged research, and dispassionate assessment are an investor's best friends.

The Buyback Binge

Michael Farr | Posted 10.02.2014 | Business
Michael Farr

Remember, markets go down from time to time, and it's normal. Cool heads and steady hands make money over time.

Top 10 Reasons Investment Firm ISIS Equity Is Changing Its Name

Seriously Skewed | Posted 11.23.2014 | Comedy
Seriously Skewed

A London based private equity firm with the regrettable name ISIS Equity is changing its name to -- well, anything else... I don't blame them. Life ...

Who Gets Rich Harvesting Burger King and the American Economy?

Dave Johnson | Posted 11.22.2014 | Business
Dave Johnson

Now Burger King is asking us to swallow something even unhealthier than their food and lower than their pay. They are asking us to let them off from paying many of the taxes that sustain the very infrastructure, courts, education system and food safety system that enables them to stay in business.

Another Flash Crash or Market Shutdown?

Michael Farr | Posted 11.11.2014 | Business
Michael Farr

Technology seems to have solved the trade execution issue, so I don't foresee an overwhelming market shutdown. Fidelity now offers an amazing 1 second trade confirmation guarantee.

Who's the Boss

Eileen Appelbaum | Posted 11.08.2014 | Business
Eileen Appelbaum

The expanded reach of private equity funds as owners of Main Street companies has also undermined the traditional employment relationship.

Loan Me $250,000. Please!

Michael Farr | Posted 11.04.2014 | Money
Michael Farr

I want to buy a house. Would you be willing to loan me $250,000 for 30 years at 4.25 percent? Your answer is crucially important. Before you answer, keep in mind that you will be taxed on the interest you receive.

Margins Remain Suspicious

Michael Farr | Posted 10.22.2014 | Business
Michael Farr

So what are the causes for optimism with regard to future earnings power? Well, the most notable are probably the recent sharp decreases in interest rates and gas prices.

Crowdfunding Companies Are Not Flocking to the Coasts

Rohan Kusre | Posted 10.15.2014 | Small Business
Rohan Kusre

The Internet is doing to the crowdfunding industry what it has done to countless other industries in the economy: democratizing the process and making geographical barriers irrelevant.

How Renewable Energy Will Completely Power California -- Get On Board or Get Left Behind

Trevor Neilson | Posted 09.28.2014 | Green
Trevor Neilson

For the public, the benefit is obvious: electricity will be cheaper, the air will be cleaner, and fewer people will die as a result.

Enough Fed! Give Free Markets a Chance!

Michael Farr | Posted 09.24.2014 | Business
Michael Farr

The widespread expansion of credit to car-buyers, especially to sub-prime borrowers, is beginning to cause some industry observers to cry "bubble." Is this economic progress?

Drowning in Profits

Laura Gottesdiener | Posted 08.23.2014 | Business
Laura Gottesdiener

The story of a private equity firm, a missing pool fence, and the death of a two-year-old child raises troubling questions about how, as a nation, we define security in housing and why, in the midst of what's regularly termed a "recovery," many neighborhoods may actually be growing increasingly vulnerable.

More of the Same

Michael Farr | Posted 08.18.2014 | Business
Michael Farr

As expected, the Federal Reserve stuck to its pattern of reducing asset purchases by another $10 billion. The monthly pace is now down to just $35 bi...

Emails: ND Ethics Law Potentially Broken on Petraeus Fracking Trip

Steve Horn | Posted 08.11.2014 | Green
Steve Horn

DeSmogBlog has obtained emails via North Dakota's Open Records Statute revealing facts that could be interpreted as indicating that North Dakota Treasurer Kelly Schmidt broke State Investment Board ethics laws.

What's Going on With Interest Rates?

Michael Farr | Posted 07.29.2014 | Business
Michael Farr

An aggressive rally in the Treasury market this morning has resulted in the lowest 10-year Treasury yield since June of last year.  Nearly everyone is looking for an explanation as to why longer-term interest rates continue to fall in the face of reduced Fed support and better economic data.  So what is going on?

Tracking Earnings

Michael Farr | Posted 07.19.2014 | Business
Michael Farr

While the overall quality and composition of earnings in the 1Q may have improved somewhat, index earnings growth remains highly dependent on margin expansion.

The Real Lesson From the EFH Bankruptcy

Eileen Appelbaum | Posted 07.16.2014 | Business
Eileen Appelbaum

Even when private equity firms seem to do everything right and treat other stakeholders fairly, the private equity business model is fundamentally a high-risk strategy built on excessive debt.

If You Can't Beat Them, Join Them - Private Equity's New Strategy?

Eileen Appelbaum | Posted 07.13.2014 | Business
Eileen Appelbaum

The PE industry's bread and butter -- using lots of debt to buyout companies (LBOs), take them over, and sell them a few years later at a huge profit -- is taking a back seat to PE's new strategy of betting on the stock market.

Zach Carter

You Didn't Even Know These Wall Streeters Were Ripping You Off

HuffingtonPost.com | Zach Carter | Posted 05.09.2014 | Politics

WASHINGTON -- Private equity firms are routinely ripping off their clients, harming pension funds, universities and charitable foundations, according ...

Economists Are Wrong

Michael Farr | Posted 07.07.2014 | Business
Michael Farr

To boil things down, there are really only two roads we can follow in an environment of such as this. The economy will either muddle along at a sub-par rate of about 2 percent until balance is restored, or we go down the path of running up debt in an effort to produce higher growth rates in the near term.