Welcome to Bookmarker!

This is a personal project by @dellsystem. I built this to help me retain information from the books I'm reading.

Source code on GitHub (MIT license).

Private equity firms raise their money from a variety of external sources. One of the largest groups of investors is public pension funds, which means that ordinary taxpaying employees contribute to this misery-making project. Stockbridge’s $13 billion worth of funding, for example, comes mostly from two sources, one of which is the Pennsylvania Public School Employees’ Retirement System. (Private equity firms that buy mobile home parks can also get money from the U.S. government, as Stockbridge did when it got a $1.3 billion loan from Fannie Mae, which justified it by saying it was helping low-income renters.)

Why would public pensions invest in something so destructive? According to financial experts (who also happen to stand to make a buck with this assertion), private equity funds allegedly outperform public markets across the world—a necessity, from the pensions’ point of view, given that pensions around the country are underfunded to the tune of $1 trillion. And I say “allegedly” because there are plenty of studies that shed doubt on whether private equity firms are the cash cow they claim to be.

Whatever the justification, the deal we’ve struck is that for one group of people to retire after a lifetime spent teaching third grade, we’re willing to risk another group being made jobless or homeless.

to think about: when power is decoupled from its impact

—p.32 Misery Makers (28) by The Baffler 3 years, 11 months ago