New Study Undermines Rationale for Investing in Private Equity and CalPERS Strategy in Particular, as Oregon CIO Demonstrates that Public Pension Funds Are Dumb Money | naked capitalism
"A new paper by Antoinette Schoar, the chair of the finance department at MIT’s Sloan School and one of the scholars whose studies helped provide the intellectual underpinnings justifying the inclusion of private equity in institutional portfolios, has released a new study that knocks the legs out from under some of her widely-cited earlier work on the persistence of the out-performance of top private equity funds. It also shows that private equity funds have not delivered the performance needed to justify investing in them. From Top 1000 Funds: Persistence of returns in private equity is diminishing. Further, the returns themselves are not what they used to be. And in even further bad news, new research from a leading Massachusetts Institute of Technology academic shows that co-investment vehicles may not be a panacea for these problems… More below.
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In Illinois, an Election Battle Looms over the Bankrupting 'Blue Model'
The short answer is disaster, the long: More below. The difference between capitalism and socialism
"Capitalism turns luxuries into necessities. Socialism turns necessities into luxuries. Andrew Carnegie gets credit for the fist part, while the second part was added later." Capitalism turns luxuries into commodities affordable by even the poor with prices so low we can afford many more luxuries which capitalism will quickly turn into commodities. The problem today is that the wealthy cannot create any real separation between their standard of living and the hoi polloi. Heh. And, so, the affluent hate capitalism. Tuesday afternoon links
"1. Chart of the Day (above) displays IRS data on the tax shares of the top 1% and the bottom 95% from 1980 to 2015. In the most recent year available (2015), the top 1% of US taxpayers (N = 1.4 million) reported about $2 trillion in adjusted gross income (AGI), which was 20.6% of total taxable income that year, and that group paid $568 billion in federal income taxes or 39% of total taxes collected. The bottom 95% of taxpayers (N = 134 million) earned 64% of total AGI ($6.5 trillion) and paid $588 billion in income taxes (and 40.4% of total taxes paid), which was just slightly more than the taxes paid by the top 1%." The question: Why are you not more productive? If the top 1% are sufficiently productive to earn the same amount as the bottom 95% perhaps the problem is not the top 1% but the bottom 95%. The listless Antifa pretenders love to scream that the top 1% are the problem but is this the case? Or, is it the pikers like Antifa who are sucking the system dry who are the problem? Perhaps we should be looking at the college-educated layabouts who do little and want the rest of us to provide for them. There is always more than one way to look at the world. Looking from the perspective of the greedy and envious is the wrong way to look at the world. We need to stop assuming their positions are correct. They are not. The 1% are incredibly productive, and while the 95 % is nowhere near as productive, perhaps we should also cut them some slack. Not all of them mind you, but at least the ones who are trying. The great fallacy is that the top 1%, 5%, or 10% is a static group of people. It is not. The people comprising these groups changes all the time. People move into and out of these groups every year. Links Even in the top 10% less than 8% of the individuals will last 10 or more consecutive years. Most will only last a single year, with 88% lasting less than a few years. It won't be long before these allow paraplegics to walk. And soon after that, the form will shrink to a size which is hardly noticeable, before being small enough to be implanted. Pro Tip: Don't attack a couple with clubs, and toss their infant child into the busy street!11/28/2017 Woman throws pushchair with baby into the street during knife fight
In the counter-attack, the father of the child stabs both the male and female attackers killing them. I have no idea what the attackers thought the outcome would be, but this seems about as I would have expected. Threatening an infant is likely to trigger a severe response. Man freed from life sentence now back behind bars facing murder charge
"A man who was freed from a life sentence in prison by a benevolent governor is now back behind bars facing a murder charge. Stonney Marcus Rivers, 50, was charged last week with first-degree murder in the drug robbery slaying of 24-year-old David Cabrera at a motel in Kent, Washington on November 2. In 2015, then-Governor Christine Gregoire commuted Rivers' life sentence to prison, which he received under a three-strikes law after being convicted of his third felony in 1995." Ask Mr. Caabrera how "benevolent" Gregoire's actions were. Prisoner with homemade skull tattooed on his face escapes "The San Joaquin County Sheriff's Office says 27-year-old Corey Hughes had fled from his work crew near Interstate 5 in Stockton on Monday afternoon. 'Today at approximately 1.30pm Sheriff's work crew driver notified Sheriff Dispatch that inmate Corey Hughes (6/30/1990) was missing from his work crew,' the San Joaquin County Sheriff's Office wrote in a Facebook post. Hughes was serving time on a weapons charge and is due to be released in February." He liked prison so much he decided to re-up! Mom 'threw newborn at baby's dad and broke child's skull'
The child will have something to be thankful for every Thanksgiving - that this woman is no longer in his life. |
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