Personal Income Implodes

Zero Hedge posted this chart, which supports my long stated observation on the global race to the bottom on wages and benefits, which impacts disposable personal income.  This is also the time period where private equity underwriters (PEU's) became ubiquitous. 

On this timeline PEU greed hallowed out the economy. 

Donald Graham Owns 40% of WaPo

Donald Graham's 2.9 million shares in The Washington Post give him roughly 40% ownership of the company.  The SEC filing stated:

2,901,692  shares
Percent of Class Represented = 39.5%

Calculated based on 7,341,602 shares of Class B Common Stock outstanding 6,202,149 shares reported by the Company as outstanding on May 3, 2013 plus 1,139,453 shares issuable upon conversion of Class A Common Stock beneficially owned by Mr. Graham, share for share, into Class B Common Stock)

Graham's WaPo just invested in Forney, a manufacturer of industrial burners.  What did Graham learn in Watford in Hertfordshire that leads him to believe the globe burns for industrial flame?  Graham says it's an attractive return investment for the Post, nothing more.  I smell a PEU.

Wainstein's Path Aided PEU's

Kenneth Wainstein, a 1984 University of Virginia graduate, served the public in several high profile roles under President George W. Bush.  Wainstein wrote the Attorney General opinion that greatly expanded NSA searches to U.S. citizens.

The procedures "would clarify that the National Security Agency (NSA) may analyze communications metadata associated with United States persons and persons believed to be in the United States", Wainstein wrote.

This provided security contractors, like Booz Allen Hamilton, the opportunity to make billions off the federal government.

Contrast Wainstein's letter with UVA founder Thomas Jefferson's statement:

"As revolutionary instruments (when nothing but revolution will cure the evils of the State) [secret societies] are necessary and indispensable, and the right to use them is inalienable by the people." --Thomas Jefferson to William Duane, 1803. FE 8:256

Wainstein later became the White House Homeland Security Advisor and closed out Bush's term, including lingering concerns about the hapless Hurricane Katrina Lessons Learned report, crafted by Frances Townsend.

Wainstein left "public service" to defend white collar criminals.  He also conducts corporate investigations, the very thing the Bush administration failed to do competently with LifeCare Hospitals and Hurricane Katrina.  Did Wainstein help Carlyle's ARINC with their recent World Bank procurement problems which resulted in nearly a three year ban or Booz Allen Hamilton's nightmare as a result of Edward Snowden's revelations?

Wainstein would be judged harshly by Jefferson, the youthful version.  He would fit in with the older Jefferson, who turned down an inheritance that would've freed his slaves, later using those same slaves as collateral for a huge loan.  Wainstein clearly aided private equity underwriters.  The American public, not so much. 

Update 5-10-17:  Wainstein has been mentioned as a possible FBI Director nominee after the firing of James Comey.  Wainstein is a good fit for Trump's PEU loving team.

Weiner's Wife Worked for PEU & State Department

CBS News reported Anthony Weiner's wife "earned approximately $135,000 from the State Department while receiving $355,000 in consulting income for representing outside clients, as she remained a Federal employee and a trusted advisor to Secretary Clinton."  Weiner's wife worked for Teneo, where Bill Clinton chairs Teneo's Advisory Board. 

No wonder ex-President Clinton sees wealth potential everywhere.  People don't actually have to leave federal employment to make big money working for a private equity underwriter (PEU).  The Government-Corporate Monstrosity looks after its own.

Thanks to Economic Policy Journal

WaPo Goes PEU

Bloomberg reported:

In what may be the most brazen diversification play in media, the Washington Post this week said it’s purchasing Forney, a Texas-based company that makes burners and flame detectors for industrial furnaces. 


Chief Executive Officer Donald Graham said Washington Post is pursuing a “decentralized operating philosophy.”

WaPo went from staunch defender of private equity underwriters to being one.

The Post’s “ongoing strategy of investing in companies with demonstrated earnings potential and strong management teams attracted to our long-term investment horizon.”

Oddly, the purchase price was not revealed, despite both United Technologies and Washington Post being publicly traded.  Neither company filed with the SEC on the agreement.

Donald Graham's media credibility was already strained by years of silence after attending annual Bilderberg Group meetings, where global plotters gain insight into where money will be made.  Given Forney's combustion niche, how might that factor into our future?  President Obama wants to light the African continent with private money.  What else might need to be burned in the global future?  Surely, PEU Graham knows the predictions.

SEC Allows PEU Solicitation

MarketWatch reported:

The Securities and Exchange Commission put out a press release last week announcing its plans to lift a general solicitation ban on hedge funds and private security offerings.

 It went on to say:

Two days later, it put out another press release detailing its complaint against Kevin G. White, a purported private-equity and hedge-fund manager from Plano, Texas, for solicitations he’d been making for years. 

White is accused of taking investor money and spending it on personal items as well as misrepresenting his background and performance. 

Kevin should seek out Carlyle Group lawyers who helped the private equity underwriter with sticky lawsuits.  Michael Huffington sued Carlyle after it lost his $20 million in a "low risk, little downside" investment.  SemGroup shareholders also sued Carlyle after their investment evaporated from billions in losses on forward looking contracts.  SemGroup's SEC filings never mentioned the firm engaged in such trades and Carlyle went for a puffery defense. 

As for timing Blackstone is ready to solicit funds from individual investors for its mutual fund which will invest in twenty or so hedge funds.

Blackstone's PEU Mutual Fund to Invest in Hedge Funds

Bloomberg reported:

Blackstone Group LP (BX:US), the world’s biggest manager of alternative assets, is starting a mutual fund that will invest in hedge funds, part of an industrywide push to attract assets from individual investors.

The Blackstone Alternative Multi-Manager Fund will charge annual fees of 3.25 percent of assets, including a 1.95 percent management fee.

The dice rollers need more ka-ching, this time supplied by smaller investors.  As P.T. Barnum once said, when the carny got dangerously overcrowded.  "Step right up, folks.  This way to the Great Egress."  Welcome to Stephen Schwarzman's investor way out, BXMMX.