In the context of anxiety and uncertainty after Standard & Poor’s decision to downgrade the United States’ credit rating and the climate of debt crisis in Europe, AJ Discala speaks to the current state of the economy.
“I believe the double dip is here, and we could go lower,” says AJ Discala. “This is a global recession; it's not just in the U.S. We don't make market predictions, but we believe that the shape of this recession is going to be more a 'W' than a 'V'.”
“Meanwhile, the S&P downgrade will make money more difficult to obtain. The economic conditions mean that conventional banking is dead, and will be for the foreseeable future. You can’t sell in a private equity model because it’s counter-intuitive to the illiquidity in the market,” says AJ Discala.
“We're fortunate that there remains a reserve of cash on the sidelines and a firming dollar, all of which will breed opportunities,” Discala says. “As merchant bankers with reserves of experience and capital, this will serve to increase the number of transactions and opportunities available to us at The Broadsmoore Group.”
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