The Great Depression/Private Equity Funds

More depression days stuff. Bear in mind that there was a resurgence in unemployment to 25% around 1936. But my genius immigrant father never seemed to miss a beat. He and my Mom were fabulous parents. We never really knew that there was a depression going on. And my needs were simple. They revolved around sports and avoiding bringing my report cards home (talk about a constant fear of impending doom). If they knew what ADD was in those days, I would still be in the third grade. I once told that to Donald Trump, about Donald Trump.

Between starting school early and skipping a grade, I graduated from high school at 16. All my friends were a few years older than me and a few years better athletically. Any street smart kid knew that if you brought the basketball, football, or baseball and bat you had to be chosen when they picked teams. My Pop understood that rule, so I always had the basketball etc., so I always got to play. Even in the worst of times my pop saw to it that I was guaranteed a slot on a team. When I showed up, all the other kids were fucked because I was the one with the ball. They had to let me play if they wanted to play at all.

Private Equity Investments
That shoe is about to fall a lot further than it has to date on further private equity fund holding valuations which will really raise hell with pension funds, endowments and foundations. I believe that the private equity funds have only begun to write down valuations of their investments which in turn will force the pension fund investors, endowments and foundations to further write down the value of their holdings in these funds, big and small. Harvard's attempt to sell their holdings in private equity funds in the secondary market at a 50% discount will, in my view, look optimistic and reaching for the stars…