In light of the deepening sub-prime, hedge fund crisis at Bear Stearns, today's WSJ
FundTrack features highlights from a letter published by Wall Street's soothsayer of gloom and doom, Jeremy Grantham
. Fund insiders may know Grantham as the founder of GMO, an investment firm that helps run the Evergreen Asset Allocation Fund and part of the Vanguard U.S. Value Fund. In the letter about the "Blackstone Peak", Grantham wrote, "I have often been too bearish about the U.S. equity markets in the last 12 years. The feeling I have today is that of watching a very slow-motion train wreck." The very next day the Dow plummeted more than 300 points. Grantham's predictions for the next five years are not on the side of optimism either, he believes that at least one major bank will fail, half of today's hedge funds will go under, and a substantial number of the private-equity firms around today will no longer exist.
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