Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

The Economy Is Slowing: Blackstone’s Steve Schwarzman

Stephen A. Schwarzman
AP

The economy appears to be slowing down dramatically, Steve Schwarzman said in an interview this afternoon with Maria Bartiromo.

The Blackstone Group, a publicly traded private equity firm that owns many companies around the world, has seen the growth in its portfolio companies fall by more than half since the beginning of 2011.

“We can see the economy slowing down. In the first quarter, our companies were growing around 9 and a half percent. In the second quarter, eight. In the last two months, it looks to be around half of that,” Schwarzman said. “We can see it getting slower in August than it was in July.”

Schwarzman points out that the slowdown is taking place both in the US and in Europe.

“The basic problem in Europe is that the banks are short capital if you mark to market sovereign debt ,” Schwarzman said.

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