Tuesday, October 2, 2012

PEU America's Final Stage

PEU ubiquitization will be complete when individuals saving for their retirement can invest in private equity.  Bloomberg reported:

David Rubenstein, co-founder of the buyout firm Carlyle Group LP (CG), said ordinary savers may someday be able to invest with firms like his, a business that so far has been limited to wealthy individuals and institutions. 

Savers would be better off putting some of their retirement money into leveraged buyouts and other alternative-investing opportunities because they often produce higher returns than the public markets, Rubenstein said in an interview with Arthur Levitt that aired yesterday on Bloomberg Radio. 

“I think it will be possible in the future where 401(k) check-off plans will be able to say you can take a certain amount of your money a year and go into an illiquid private- equity fund,” said Rubenstein, 63. “However, they shouldn’t be able to put too much of their money into anything that is illiquid.” 
The billionaire boys final cash in could come at the wallets of little people.  The irony would come if workers needed greater returns because their PEU owner eliminated the pension benefit for employees.  It's but a matter of time before such a thing happens in the global PEU greed fractal.