Chanos: Private Equity Was On Crack

Posted by John Carney, Feb 08, 2008, 4:15pm

privateequityoncrack.jpgJim Chanos, the legendary hedge fund manager who shorted Enron when the company was flying high, is predicting a "huge spike in defaults" of leveraged loans, according to Reuters.

"I don't know what crack pipes these guys were smoking, but some of the valuations were absolute madness," said Chanos, speaking to hundreds of investors, referring to private equity firms and their portfolio companies.

Short-seller Chanos sees raft of new opportunities [Reuters]

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Posted by 36th Chamber, Feb 08, 2008 4:26PM

The progression goes investment banking --> private equity --> hedge fund and marijuana --> crack --> ?

Posted by AJ, Feb 08, 2008 4:33PM

Please, we're classy here, coke only

Posted by , Feb 08, 2008 4:40PM

Methanphetamines for me, please

Posted by , Feb 08, 2008 4:47PM

Fox BN just covered "Boy toys and Sugar mamas" event which apparently took place last night.
Any news on that from DB?

Posted by 36th Chamber, Feb 08, 2008 6:25PM

A certain exec over at Bear would reply to your comment AJ, but he's too busy smoking joints in the bathroom.

Posted by , Feb 08, 2008 8:07PM

Not something you'd ever expect to hear from a career short-seller...

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