A friend sent me the following Twitter link:
SEC Commissioner Caroline Crenshaw, using FTX as an example of why private offerings do not offer investors sufficient protections.
The post referenced the Commissioner's speech on the SEC website. Crenshaw cited Theranos and WeWork in addition to FTX.
It took no time to find a 2019 presentation on the SEC's website encouraging private investment.
It's amazing that guys that promote free markets want private m a r k - i t s. I take issue with the reported results. They have merged deal-making with the asset manager and debt manager. They control the inputs on all. They have been allowed to bypass accounting standards, audit standards, anti -Trust regulations, and market clearing. They have been aided and abetted by the Federal Reserve which allowed them to use zero interest rate policy to over-leverage the very same assets they've taken out of circulation. The fact that Jay Clayton didn't mention this while at the SEC shows you how deep into the pockets of his Masters he is.
The Rake on these private assets is unreal. Think about Uber.. How many billions were taken out by early seed investors on a platform that has never made any money but the valuation in the private Market was insane and then they came public. The promotion and disinformation they are allowed to get away with just tells you that they're going to get what they want, what they've been planning for. It works for them. It works for the people that they've captured but I don't think it's going to work for any of us.. And now a word from our sponsors the FOMC they want to induce pain on labor.. Sigh
I offer a long and loud round of applause!
So that's how those returns get "excess" and/or "uncorrelated" (sales pitch).
Remember the greed and leverage boys want your individual retirement account/401k money. FTX's Sam Bankman-Fried testified before Congress to his company's risk management regimen (which did not exist in reality).
Carlyle Group co-founder David Rubenstein sold a highly leverage mortgage backed security fund as "low risk" before Carlyle Capital Corporation imploded in early 2008. They then ran from its carcass.
The private equity elephant wants in your retirement henhouse and the SEC may accommodate such a move . Will you let him in?
Update 2-4-23: Wealthion's Adam Taggert aired his interview with Jim Rickards. Rickards predicts a significant drop in stock market indices. He recommends investors put money into private equity.
Taggert mentioned new models coming that give investors access to private equity. He asked viewers to indicate their interest in learning more about those opportunities.
I thought Wealthion was leveling the field for the little guy, not serving us up to the greed and leverage boys looking for their next mark.
