45 percent of world’s wealth destroyed: Blackstone CEO
NEW YORK (Reuters) – Private equity company Blackstone Group LP (BX.N) CEO Stephen Schwarzman said on Tuesday that up to 45 percent of the world’s wealth has been destroyed by the global credit crisis.
“Between 40 and 45 percent of the world’s wealth has been destroyed in little less than a year and a half,” Schwarzman told an audience at the Japan Society. “This is absolutely unprecedented in our lifetime.”
So, if your 401k is suffering, well… join the club! The whole world is in this one together, and that means we all have to get together and work our way out if it.
He put part of the blame for the financial crisis to credit rating agencies.
“What’s pretty clear is that, if you were looking for one culprit out of the many, many, many culprits, you have to point your finger at the rating agencies,” he said.
Rating companies have been the focus of intense criticism for their role in granting top “AAA” ratings for complex bonds that later plummeted in value, resulting in subsequent rating cuts, in many cases to junk status.
“Once you bought into … the Triple A paper and it turned out to be paper that was in many situations going to end up defaulting, then you really had the makings of a global problem,” he said.
Let me tell you what is going to change the game in my opinion. Technological innovation.
Right now, what we need are some new and exciting disruptive technologies to get people fired up again. Everyone is going to keep hoarding and scrimping and saving until something comes along that they figure delivers so much value that they just can’t live without it!
What could that be? Well:
- New medical technologies that extend life, cure diseases, or improve our physical health. Can anyone say Bio tech investment?
- New battery and other storage devices. We already know how to make all the energy we need. The problem is, we can’t store it for long at all.
- New transportation infrastructure. I’m tired of building and maintaining roads! And smelling car fumes! How about futuristic electric powered hover-cars!
Bottom line people… wishing about changing the world isn’t going to make it happen! We have to ALL get off our asses and work our way out of it. So quit complaining and start innovating a way out of this mess and we’ll all be just fine.