Fed Chair and former private equity underwriter (PEU) Jay Powell dragged his feet as inflation rose and ingrained itself into the economy. He assured markets it would be fleeting as the gargantuan asset bubble expanded. This enabled Powell's former peers to monetize a good chunk of their affiliates. KKR reported record monetization for Q4 2021. In June 2021 The Carlyle Group achieved over 50%-plus private equity returns over the prior twelve months.
Citizens may have experienced private equity as their company's sponsor, check mailer or home landlord. Most Americans have directly contributed to PEU billionaire wealth.
Bloomberg reported:
Carlyle Group co-founder David Rubenstein said "We’re due for a correction. “The markets have been very ebullient for quite some time. We’ve basically been having free money.”
Fed Chief Jay Powell enabled his former employer (Carlyle) to buy and flip companies with that free money. Uncle Sam taxed those profits at a preferred rate (carried interest). Billionaires won.
The wealth of billionaires increased more than ever before over the past two years: The 10 richest people in the world — all white men — more than doubled their wealth, from a collective $700 billion to $1.5 trillion.
From March 2020 to November 2021, a new billionaire was created every 26 hours, according to the report.
Meanwhile, the organization estimated that over 160 million people have been pushed into poverty in that time.
We may need to ride through a recession so the greed and leverage boys can mobilize over $500 billion in dry powder on newly distressed assets. Yes, they still have their preferred taxation.
Update 6-10-22: Insider Larry Summers said “The Fed’s forecasts from March, saying that inflation would be coming down to the 2s by the end of the year was, frankly, delusional when issued, and looks even more ridiculous today.” Inflation was a hot 8.6% for May. Summers urged the Fed to investigate why officials’ forecasts were “so dramatically” and repeatedly wrong.
