I also think the subprime mortgage issue is far from over. Fed and MM have successfully covered up the issue by market manipulation or at least avoided the immediate threat to and hard impact on the economy since 227 drop. From the market side, Fed can breathe some air now and focus their attention on controlling inflation subtly.
What do you think of blackstone? I think once the US Congress eye on it, there is going to have some impact on bx performance. If tax rate jumps from 15% to 31%, that is a big hit. BX can begin to loose money. Tax issue may slow down IPO of hedge fund and private equity fund. Institutional investors in the street seems not that kind of hot on the ipo of this sector.