Where credit hides

In a Labor Day post, I pointed to Jeb Bush the Younger practicing as a Washington lobbyist for the buyout sector, The Buyout Whisperer.

This short update points out that while the ‘little guy’ failing to make mortgage payments is being blamed for economic hiccups around the world, the real credit squeeze is likely from the hundreds of billions steered into taking public companies out of regulated stock markets. The Times tries to explain:

[Upcoming are] $380 billion of loans and bonds to be laid off from leveraged buyouts and other private-equity deals at a time when the markets have shifted sharply against them.

The crisis has led to a big change in interest-rate expectations.