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Re: Private Equity Funds Pour $7B Thus Far Into Shipping 2014 --- Hellenic ShippingPersonally, I can't think of a worse combination than cheap Chinese production funded by hot money. In the 'good old days' you had German KG's - private investors with deep pockets, you had family run business (Greek, Scandinavian, UK) with histories going back 100's of years, and banks with shipping desks serving this industry. And yes, they screwed things up ... but most cyclical industries do (ultimately) respond to supply:demand economics. I think a good could case can be made that without the 2008-2009 credit/financial crises, the tanker and bulk carrier business would have reached equilibrium by this time. Now you've got Chinese yards offering 'no money down' with cheap government financing, and hedge and 'investment' funds playing their money games. Do you see any interest in the welfare of public investors in the following? "What makes shipping interesting and exciting is that it is an ever changing market with considerable volatility which therefore really suits the mindset of the fund manager”. Caveat emptor should be painted in big block letters on the hulls of all these vessels. Rats do leave leaking ships before the passengers know that there's a problem. Andy |
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