Private Equity Faces A Popular Uprising

“Private equity is a force for good.”

Yesterday, in London, the Masters of the Universe confronted the Masters of Great Britain. A group of four representatives from the private equity industry appeared before a committee of the House of Commons to defend their business. What are they defending it against? A popular uprising. People are getting sick of hearing about all the money made by the financial industry. They are beginning to sharpen their guillotines and heat up the tar.

Meanwhile, the Masters of the USA – and by pretension, of the whole Empire – prepared their own version of The Terror. Max Baucus and Charles Grassley, both eminent defenders of the US Constitution, Homeland Security and Efficient Market Hypothesis, proposed to increase taxes on private equity firms.

It was inevitable. People will only stand for so much liberty…and not a bit more. Right now, the hustlers are free to make as much as they want – thanks largely to the EZ cash and credit available to the financial industry. They are bidding for works of art…for baubles and trifles…for houses…for stocks and bonds…for just about everything. They have so much money that they are able to throw it around recklessly…which is galling to people who have much less.

Eventually, the have-nots begin to get a little sour on the whole system. And the politicians, rushing to get ahead of a trend and squeeze some money from people who are richer than they are, soon raise the banners of “fairness” and “equality.”

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.

Bill Bonner

Latest posts by Bill Bonner (see all)

Leave a Reply

Be the First to Comment!

Notify of
avatar
wpDiscuz
Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@marketsandmoney.com.au