Newspaper article The Evening Standard (London, England)

So Crabby over Loss of Wealth

Newspaper article The Evening Standard (London, England)

So Crabby over Loss of Wealth

Article excerpt

Byline: PHILIP DELVES BROUGHTON LETTER FROM WALL STREET

STEVE Schwarzman, chairman of the Blackstone Group, said in a speech at New York's Japan Society this week that "between 40% and 45% of the world's wealth has been destroyed in little less than a year and a half".

A look at stock markets in the United States and around the world suggest he is right. Since March of 2008 the Dow Jones is down 41%, the S& P down 43%, the FTSE 100 down 35% and Asian, Latin American and Middle Eastern markets all down 40% or so.

But there's something about Schwarzman I don't trust. Perhaps it was the profile in the Wall Street Journal, which claimed he shouted at his butler because his shoes squeaked, and that his favourite food is stone-crab claws that cost $400 per pound.

When he tries to be oracular, like Warren Buffett, he comes over shifty. Was his estimate of global wealth destruction an example of dodgy Wall Street asset pricing? Time for some fuzzy maths. …

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