Having fallen nearly 10% thus far in 2008, the S&P 500 index stumbles out of bed this morning, with Wall Street analysts warning investors not to expect corporate earnings to bail out stocks.

Privateers are less trepidatious by far.

When recently asked about the subprime meltdown, main World Trade Center developer Larry Silverstein said this: “It’s a dislocation for some, and an enormous opportunity for others. People who are over-leveraged find themselves squeezed. This presents opportunities for those of us who have cash.”

Sellers have reduced leverage; strategic buyers, with greater access to their own cash (and credit, given a strong balance sheet), hold the upper-hand.

While well shy of the gonzo $110 billion investment in 2000, venture capitalists hit a six-year high in 2007, pumping $29.4 billion into 3,800 U.S.-based start-ups led by the software, health sciences and clean-tech energy sectors. John Taylor of the National Venture Capital Association is bullish on the future. “Venture firms would not be putting money in like this if they were not optimistic about what lies ahead.”

Private equity is good for job growth, too, reports The Private Equity Council. In a just-released study, the group found that acquisitions of large companies by the leading U.S. based private equity firms between 2002 and 2005 generated significant net U.S. employment gains.

Pointing to private equity-driven job growth in manufacturing, study co-author Dr. Robert Shapiro heralds the “long-term approach used by private equity firms to reform the operations of underperforming companies.”

Watch out you laggards--will there be a bright spot or two from the 400 or so blue-chippers yet to report?

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