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Still, Mr. Ackman has been vocal about his desire to find a more permanent base of capital.
BlackRock's assets under management fell 6percentt from the same time last year, to $1.28 trillion, reducing the base of capital on which it charges fees.
The trouble is that regulators have allowed and even encouraged the banks to become more "efficient"—lending ever more, against the backing of a diminishing base of capital.
"The problem is that in order to invest in this you have to make sure your base of capital is stable," said Whitney Tilson, founder and managing director of T2 Partners, a hedge fund firm in New York.
They constructed a giant pyramid of debt on a very small base of capital (eighty-one billion dollars, by the most recent publicly available figures), and by May, 2008, either owned or guaranteed more than five trillion dollars in mortgages.
As well as reducing the return on equity, and presumably the bonus pool for traders, it will help level the playing field: no other entity on earth is able to balance such a huge pyramid of risk on such a tiny base of capital.
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The base value of capital stock is given by the 1992 historic cost value of assets.
The solution is to build a "strategic competitive advantage" through an alliance with an offshore base of intellectual capital.
Just as we try to maintain and enhance our own assets – our houses, cars and our knowledge and skills – so too should the broader economy avoid running down its base of natural capital assets.
The city has built a strong base of native capital providers to nurture this growing SaaS ecosystem.
But with a broader base of local capital, it's possible that this moment could become a movement.
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