If you're counting on a pension or the STONK Market to fund your retirement or cost of living in the still-corrupted Biden Admin economy, you better keep an eye on these gangster thugs.
Carried interest isn’t the only, nor primary culprit. Too-high capital gains taxation, too-high income taxation, too-heavy debt loads (with company’s cashing out by selling to PE firms, knowing the firms will load up on debt) all carry responsibility when a PE levered investment goes south. Inflation (government taxation by Congress and the Federal Reserve) is also culpable, increasing insurance rates, retirement costs, etcetera. Government regulation, Obamacare, ESG, DEI also contribute to driving-up costs. All told, there is much less capital available to service debt, to invest in growth, to share with employees.
Similarly, we've asked the question "Why is Apple valued at $3.2T still in bed with blackrock when they don't need anyone's money?"
Demons
Carried interest isn’t the only, nor primary culprit. Too-high capital gains taxation, too-high income taxation, too-heavy debt loads (with company’s cashing out by selling to PE firms, knowing the firms will load up on debt) all carry responsibility when a PE levered investment goes south. Inflation (government taxation by Congress and the Federal Reserve) is also culpable, increasing insurance rates, retirement costs, etcetera. Government regulation, Obamacare, ESG, DEI also contribute to driving-up costs. All told, there is much less capital available to service debt, to invest in growth, to share with employees.
... thank you for this!