If you thought real estate was the only awful investment Wall Street made over the past five years, think again. Wall Street financiers also went hog wild over the production and distribution of low-budget independent films. The result? A glut of indie schlock WSJ:
Today, the credit crunch is putting the brakes on outside film financing. But Hollywood executives fear the glut created by the recent spate of overproduction is going to be felt for at least a couple more years. Some people say the worst of the oversupply problem is still about a year away.
“We’re at the top of the curve heading down,” says Hal Sadoff, head of international and independent film at ICM, one of the major talent agencies in Hollywood. “We’ve seen many of these financial institutions, private-equity firms and hedge funds pull away from the industry. But the films that they have advanced are still in production, and it will take another six to 12 months for the market to regularize again.”
So now you can blame Wall Street for the plummeting value of your house and Al Pacino’s godawful “88 Minutes.”
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