The stock price just fell below $31, which is an IPO price. Everyone who invested money at private placement are in the red and all their money are locked, they are not allowed to sell.

I think Blackstone is a king of junk. They own over 50 corporations and they issued hundreds of billions of junk bonds to finance those acquisitions. And they have to pay the interest.

What’s next? I don’t think Blackstone is doomed, they raised good cash at IPO and they will use it to pay the bills. But what happens next is a dramatic restructuring and cost-cutting in all those 50 corporations, which employ (as I recall) over 200,000 people. We’ll probably see 50,000 layoffs pretty soon, which is a lot.