In August, BloggingStocks’ Kevin Kelly wrote about signs that the credit crunch could have a fabric impact on the ability of Hollywood to finance film projects.

Sunday’s New York Times writes about the recent emergence of special funds for investing in Hollywood productions, including the $600 million Gun Hill Road 1, a fund maintained by Gun Hill Road LLC. These funds are fueled by dollars from hedge funds and private fairness firms

According to The Times, “All of the hand-wringing leads to a basic question: What whether some of the hedge fund and private fairness guys (and they are still mostly guys) pack their bags and head domestic to Connecticut? How not good off would the studios really be? One reply is that: A little less money might not be a not good development for studios and, heaven forbid, for moviegoers.”

Apparently

the willingness of hedge funds and private fairness types to invest in these projects (I would speculate that many of these former high-school-nerd money managers invest in films not to generate a ROI, but rather to boost their EGO, and show those kids who made fun of their pocket protectors what’s what) has lead to a film glut, with a lot of sub-par, big budget movies getting financed that never should have. Doesn’t that sound a lot like the final months of the private fairness bubble?

In any case, possibly a decline in the dollars available for film productions wouldn’t be such a poor thing. Perhaps Hollywood can get absent from its infatuation with special effects and big names, and focus increasingly on creativity and art.

Original post by Zac Bissonnette

foreclosure debt consolidation student loan consolidation student loans mortgage credit card college finance child support debt