Blackstone (BX), one of the largest real estate investment firms, believes that the financial system is overly leveraged. Per CNBC:
We are in the middle of an epic credit bubble, in my opinion, the likes of which I haven't seen in my career in private equity," Joseph Baratta, The Blackstone Group's global head of private equity, said Thursday night at the Dow Jones Private Equity Analyst Conference in New York City. "The cost of a high-yield bond on an absolute coupon basis is as low as it's ever been."
Baratta said the U.S. still has "clear headwinds" and is "range bound" between 1 percent and 3 percent economic growth.
