Tuesday, June 11, 2013

A Business Theory of Everything: PEU

To whom should America look to solve all our ills?  According to one economist, it's private equity underwriters (PEU's).  For long term unemployment solutions, consider private equity:  WaPo offered:

“Why not make it so you can do that if you set up a venture fund that invests in places we identify as really needing help, where the long-term unemployment rates are in the double digits, you could have advantageous tax treatment?” Let the Carlyle group help us solve the problem. Those are the range of things, and the last one is the thing I’m working the hardest on, and will have a proposal on in a few months.
Ah, The Carlyle Group fixing America's unemployment ills.  That has a certain level of irony.  A former Bloomberg reporter had this to say:

I have seen so many people -- particularly those in their 50s - 70s -- taken apart by what has happened in their industry as greed has hollowed out the economy. These are people took pride in their jobs and held themselves to this invisible standard that we all just took for granted, but is being wiped out.

The Carlyle Group scares me more than anything I've ever seen on Wall Street. It seems to exist to corrupt politicians and it's hard to know who they even represent.

I watched a video interview of (David) Rubenstein and his arrogance is really beyond tolerance. He was going on about the debt ceiling problem and how there would need to be cuts in services and higher taxes. When the reporter asked him about tax on carried interest he turned really disdainful and said that this "only" amounted to $22 billion over some number of years and this was not serious money. Boy, nothing like everybody doing their small part to save the country from oblivion!
How many of those "taken apart" in their 50's (who formerly took pride in their jobs) ended up in the long term unemployed due to Carlyle or their PEU brethren?

Now Carlyle should get access to cheap public financing, tax breaks to re-employ those they decimated, and another chance to profit big from flipping publicly supported ventures?  Only in America's PEU World, supported by politicians Red and Blue.  The Business Theory of Everything is Greed Theory, personified by PEU's..