Democratic House leaders, Nancy Pelosi and Dick Durbin, proposed "front loaded" infrastructure projects. This bodes well for private equity underwriters (PEU's), who hold over $120 billion in funds targeting infrastructure. The Obama administration clearly expressed its preference for public-private partnerships (PPP's). States are embracing PPP's, as are the wealthy.
The Carlyle Group, a politically connected PEU, closed its first infrastructure deal, Connecticut highway rest stops. They partnered with former enemy, SEIU, on cleaning staff for the facilities. The timing is good for Carlyle, as it markets port and rest area PPP's to Virginia.
Carlyle co-founder David Rubenstein called the first economic stimulus package from Seward's Folly. He did so before people outside Washington D.C. became aware of a looming "stimulus." Reubenstein advised Alaskans to line up for their share.
Round #2 of stimulus will help PEU's. Citizens' assets will go into PPP's. Financially stressed state and local governments will sell their infrastructure franchises on the cheap.
What happens when White House love combines with stimulus? I predict more corporafornication behind the blue curtain. I'm scared to ponder any potential offspring.
