private equity goes public

so this week was the much anticipated Blackstone IPO (BX)...it did well, rising several dollars in its first day of trading. So Steve S & Pete P. are richer now than they were several days ago...congrats.

The dark side to all this is the attention that the manager's gains are receiving from the tax gurus on capitol hill. The potential problem: the carry may be taxed at ordinary income rates (approximately 35%) vs. the capital gains rate of 15%. That's going to put a big dent in the take home of some of the heaviest hitters. The consensus out there now, if there is one, is that the bill may get through the House but there are enough well-kept republicans in the Senate to filibuster the bill and stop it dead in its tracks. Here's to the lobbyists and their ability to work their magic on the votes that matter.

Busy week, the boys at Bear have been burning the midnight oil trying to step in and save two of their hedge funds that have experienced huge losses as a result of the sub-prime mortgage meltdown. After skimming along without much skin in their own game, Bear Stearns will be stepping up in a big way, throwing down about $3B to shore up their funds and make the creditors happy. This all comes 10 years after the last major hedge fund melt-down (Amaranth excluded) which required a group of banks come to their rescue...maybe you remember Long Term Capital Management?

In other matters, Q3 will be the time to shine.

DJIA 13,360.26

NASDAQ 2,588.96

SP500 1,502.56