I dont have time to comment on this review but as I have suggested in the past the future of Macquarie Bank and its ‘millionaire factory’ is being increasingly questioned. In my earlier post I noted that Enron analyst Jim Chanos described Macquarie as a Ponzi scheme.
Certainly the spinoff firms from Macquarie are not doing well and I get nervous in the current circumstances when firms sell assets and use the proceeds to support their share price. I am also nervous when (for whatever reasons) major investments like TransUrban are making losses of $142 million when these investments are basically supported by mountains of debt. Macquarie does not seem to have a lot of free capital to cover itself against shocks and to ride out an expected economic downturn. (108)