Blackstone Calls Mortgages "Scary" and a "Black Hole"

Fun, quotable stuff from Blackstone today during its earnings conference call. The (public)private equity company’s CEO, Tony James, said the following about the mortgage business:

… the mortgage black hole is I think worse than anyone thought, deeper, darker, scarier than what the banks thought. They are all now looking at new reserves and my sense is that from conversations I have had recently with executives of most of the big banks is they don’t have a clear picture of how this will play out and their confidence is low. So I think they are going to remain restrained in advancing new credit until they have a better sense of where things really are in the momentum shift and we think that will take into early next year sometime to resolve itself.

Oooooh, scary stuff.

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