Monday, February 20, 2017

PEUs Trump Little People

Citizens taken apart by stagnant wages and declining benefits the last few decades provided the ecosystem for Donald Trump's White House win.  Many voters don't know the President appointed billionaires to his cabinet, most are private equity underwriters (PEU) or worked on Wall Street. They've worked a system stacked in their favor (low borrowing costs, preferred taxation) to greatly increase their wealth while middle class workers took it on the chin.
Trump advisor Stephen Schwarzman is co-founder of PEU giant Blackstone Group.  His 70th birthday soiree spectacularly eclipsed his 60th, which was opined to be the harbinger for the end of excess wealth and its shameless display.  Despite this the good times continued rolling for the greed and leverage boys.

President Trump may tap Cerberus Capital co-founder Stephen Feinberg to retool America's Intelligence services.  Cerberus played a role in the "slow motion terrorism of pirate capitalism" which devastated Lancaster, Ohio (Bloomberg).

WaPo described Feinberg:

On Wall Street, Feinberg is considered an enigma. He rarely gives interviews and once said of private equity executives, “We try to hide religiously.”

“If anyone at Cerberus has his picture in the paper and a picture of his apartment, we will do more than fire that person,” Feinberg told shareholders in 2007, according to Rolling Stone magazine. “We will kill him. The jail sentence will be worth it.”
Surely someone from Homeland Security guarded Cerberus' investor gathering and its high ranking officials former Vice President Dan Quayle and Treasury Chief John Snow.  What happened to "see something, say something." 

Why do billionaire private equity chiefs hide religiously to the point of threatening physical harm?  It's their love of money and their endless drive to have more.  How will voters wishes stack up to those of President Trump's close advisors?  I expect the little people will continue getting the raw end of the deal. 

Update 3-14-17:  The Atlantic picked up on how PEUs devastated Lancaster.