WaPo followed Fareed Zakaria's GPS in fawning over Carlyle Group co-founder David Rubenstein. The piece highlighted Rubenstein's upbringing, with his father a postal worker. Mr. Rubenstein cited education as the key to his economic fortune. Surely, other students graduated from Duke and got a law degree at the University of Chicago. How many are multi-billionaires? It it's not 100%, Rubenstein's theory is in need of modification.
Mr. Rubenstein's initial killing came from selling Alaskan Native American tax losses. This venture became known as the Great Eskimo Tax Scam.
“Look, I know capitalism has its problems; it’s not always fair,” Rubenstein said. “I helped to start a company with virtually no money, and now I have more than I ever anticipated.”Carlyle exploited, even help create structures advantageous to private equity. One of those is tax structures, domestic and offshore. The Carlyle Group's IPO filing shows the firm to be a virtual nonprofit, much like a charitable hospital. There's nothing charitable about private equity underwriters (PEU's).
That said, here's to you Mr. Rubenstein, the nation turns its lonely eyes to you...