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Microsoft even bought equity stakes in some cable operators with the aim of improving its bargaining position, to no avail.
The plan calls for a state bank, VTB, which recently bought equity in Bank of Moscow, to contribute an additional 100 billion rubles.
Blackstone bought Equity Office for $39 billion in early 2007, at what turned out to be the height of the market.
On the one hand, high past returns are an indicator of low future returns: that has certainly proved true for those who bought equity mutual funds at the turn of the decade.
The Treasury Department also owns stakes in many small banks as part of the Troubled Asset Relief Program, and specifically the Capital Purchase Program in which it essentially bought equity in many lenders.
"We bought equity at the equivalent of 50 cents a share, and some of our limited partners wanted us to sell at the equivalent of $2.75, but we insisted there was a lot of potential," Mr. Roberts said.
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As investors bought equities, valuations (and thus prices) rose, enticing them to put more money in the stockmarket.
Maybe China would have just bought equities or land, supporting American demand without necessarily supercharging credit growth.To be more clear, macroprudential policy might reduce some investment.
The compounding effect on the portfolios of those who bought equities rather than bonds is stupendous.But the term "risk premium" is there for a reason.
He also makes longer-term investments, often buying equity stakes directly from companies.
To the extent that the company issues debt to buy equity, that might indeed boost earnings per share.
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