September 26, 2008 8:55PM

Forestalling the Market

I have been telling reporters there is plenty of private money available for deals. Witness Bank of America’s purchasing Merrill Lynch; Buffett’s $5 billion investment in Goldman Sachs; and JP Morgan Chase’s purchase of WAMU. But sellers will now hold out for the expected baillout price from Treasury, and that will price private money out. A former colleague on Wall Street confirmed my position this afternoon.