Sitting in his 25th floor office with a sweeping view of the Manhattan skyline, billionaire Wilbur Ross (Trades, Portfolio) is the master of all he surveys, but he does not like what he is seeing. Ross’ composure is legendary, but this time irritation comes to the fore as he opines on the current state of affairs in the U.S. The King of Bankruptcy is not only frustrated by the regulatory overkill under the Obama administration, he is also worried that the U.S. could lose its educational edge over the years. With visible agitation, he mentions, “The regulatory agencies are out of control and that is a huge problem for the economy.” Outside, his assistants’ phones ring incessantly, indicating that Ross continues to be a much sought-after financier and the distress hunter in him is very much on the prowl. Only this time his sights are set far outside the United States. Financial services and energy continue to be his favourite hunting grounds, and this quest has taken him across the Atlantic to the U.K. and Ireland and as far as China. Among his existing U.S. investments, he is gung-ho on shale gas and believes a lower cost of energy will play an important role in reviving the U.S. economy.
The Fed is pushing as much liquidity as possible with the aim of getting businesses to start investing, but bank lending does not seem to be taking off. Why? Continue Reading »