Tuesday, July 05, 2016

Michael Krieger-
Complete Collapse of Everything
What is coming is much worse than a financial crash. Former Wall Street analyst turned journalist, Michael Krieger contends: "In my writings, when I first came out of Wall Street, I focused on debt, I focused on economics and I focused on financial markets. I did all of that stuff, but I stopped doing that for one simple reason. It was obvious to me . . . that this thing had only one way to go, which is a complete collapse of everything. We’re going to need to start over. There’s too much debt. There’s too much corruption. There’s too much BS. There’s too much war. There’s too much everything that is bad in this world, and debt is one aspect of it. Are we going to have to wipe out the debts one way or the other? Of course, we will. I guess the reason I have stopped talking about that and writing about that is because it is so obvious. So, what I have been doing over the last three years is getting people aware and engaged on everything, not just the economics, but the political corruption. Every single industry in this world is basically hitting peak corruption, peak shadiness, peak violence and peak everything. So, it’s not just the debt or the economies that are going to collapse, it’s everything, the political establishment and the social fabric. All of these things we have been living under our entire lives will be replaced by something else. . . . The only question is, are we going to get something better or are we going to get something worse?" .. 19 minutes

1 comment:

Anonymous said...

New York Times’ Gretchen Morgenson: Private Equity Transparency Bills, Including California Treasurer Chiang’s AB 2833 “Hit a Wall”

Over the weekend, Gretchen Morgenson of the New York Times confirmed these readings of the sorry state of AB 2833 in a broader article on stymied private equity reform efforts. From her column:

It began last year as a promising push by a few states to require private equity firms that invest on behalf of public pension funds and university endowments to be more forthcoming. But the effort has hit a wall as bills in California and Kentucky intended to shed light on fees and practices at these powerful firms have been either killed or watered down.

One of the bills proposed in California would have required only modest disclosures: the publication of a handful of pages from confidential limited partnership agreements. It was shot down.

Even worse, another private equity transparency bill in the state was recently amended to eliminate disclosures about related-party transactions between private equity firms and the portfolio companies they oversee. Fees paid by portfolio companies to private equity funds ultimately come out of the pockets of fund investors, so more sunlight in this area would have been beneficial.

Needless to say, the bill Morgeenson mentions in her third paragraph is Chiang’s legislation, AB 2833.

Mind you, it would be one thing if Chiang had made a serious effort on behalf of a strong version of the bill, particularly since he has put AB 2833 first on his list of “must pass” bills for this year. But as we’ve indicated, Chiang’s actions make clear that he is far less interested in having the pension funds to which he has a fiduciary duty understand the true costs of investing in private equity than making enough of a show so as to get good headlines from the not-finance-savvy in-state media.

Chiang didn’t even begin to put up a serious fight for a strong version of his bill. Worse, as we’ll discuss in more detail, hopefully this week, his office actively misled the CalPERS board and failed to challenge false information provided by staff. And mind you, this is a classic case of the dog that didn’t bark. There was no opposition by the private equity industry. They knew they could rely on their stooges at the public pension funds to do their dirty work, and that Chiang lacked the know-how and the interest to push back.
Not only did Chiang not fight, he didn’t even go through the pro forma efforts to show he cared about the bill.

Pensioners are so screwed b/c their fiduciaries have been compromised for a long time.