culture, politics, commentary, criticism

Monday, February 24, 2003
Last year the return of the S&P 500 was –22%. The Carlyle Group's return was +29%. This week's Barron's contains an article profiling
The Carlyle Group (subscription required), the mysterious friend of the Bushes, the bin Ladens, and conspiracy theorists everywhere:
The Carlyle Group, based in Washington, is best known for its brass. Its boardroom is stuffed with formers: former presidents, former cabinet secretaries and former regulatory commissioners.

Former Reagan defense chief Frank Carlucci is chairman emeritus. He recently was replaced as chairman by Lou Gerstner, formerly the chairman of IBM. Former British Prime Minister John Major is chairman of Carlyle Europe; and George Bush Sr., the former president, is a senior adviser. James A. Baker, a former Treasury Secretary, is senior counsel. Arthur Levitt, the former Securities and Exchange Commission chairman under President Clinton, recently became a managing director.

The firm, which started out in 1987 with just $5 million under management, now has close to $14 billion. It boasts 550 clients worldwide, including large pension funds such as Calpers and big schools such as the University of Texas. The company focuses on management-led buyouts but also invests in real estate, new ventures and other assets. Its average annual return on investment is 29% across its corporate funds and 26% across its real-estate funds.
That's a fifty-one-percentage-point spread between the CEO class and the worker bees. Meanwhile, the working stiffs of the USA have their money trapped in 401(k)s hobbled by executives (Enron, Dynegy, etc.) who shirk their fiduciary duties and defraud their employees.

Any number with a plus sign in front of it isn't a bad average annual return these days (i.e., since the advent of the George W. Bush administration). A cynic might say that an investment return in the high twenties might even be worth killing for. (Figuratively, we can only hope.) Come hell or high water, the Republican class warriors get their lucre.

The title of the article, "Well-Connected," is an understatement. Or perhaps it is actually a misunderstatement.

Greatest Hits · Alternatives to First Command Financial Planning · First Command, last resort, Part 3 · Part 2 · Part 1 · Stealing $50K from a widow: Wells Real Estate · Leo Wells, REITs and divine wealth · Sex-crazed Red State teenagers · What I hate: a manifesto · Spawn of Darleen Druyun · All-American high school sex party · Why is Ken Lay smiling? · Poppy's Enron birthday party · The Saudi money laundry and the president's uncle · The sentence of Enron's John Forney · The holiness of Neil Bush's marriage · The Silence of Cheney: a poem · South Park Christians · Capitalist against Bush: Warren Buffett · Fastow childen vs. Enron children · Give your prescription money to your old boss · Neil Bush, hard-working matchmaker · Republicans against fetuses and pregnant women · Emboldened Ken Lay · Faith-based jails · Please die for me so I can skip your funeral · A brief illustrated history of the Republican Party · Nancy Victory · Soldiers become accountants · Beware the Merrill Lynch mob · Darleen Druyun's $5.7 billion surprise · First responder funding · Hoovering the country · First Command fifty percent load · Ken Lay and the Atkins diet · Halliburton WMD · Leave no CEO behind · August in Crawford · Elaine Pagels · Profitable slave labor at Halliburton · Tom Hanks + Mujahideen · Sharon & Neilsie Bush · One weekend a month, or eternity · Is the US pumping Iraqi oil to Kuwait? · Cheney's war · Seth Glickenhaus: Capitalist against Bush · Martha's blow job · Mark Belnick: Tyco Catholic nut · Cheney's deferred Halliburton compensation · Jeb sucks sugar cane · Poindexter & LifeLog · American Family Association panic · Riley Bechtel and the crony economy · The Book of Sharon (Bush) · The Art of Enron · Plunder convention · Waiting in Kuwait: Jay Garner · What's an Army private worth? · Barbara Bodine, Queen of Baghdad · Sneaky bastards at Halliburton · Golf course and barbecue military strategy · Enron at large · Recent astroturf · Cracker Chic 2 · No business like war business · Big Brother · Martha Stewart vs. Thomas White · Roger Kimball, disappointed Republican poetry fan · Cheney, Lay, Afghanistan · Terry Lynn Barton, crimes of burning · Feasting at the Cheney trough · Who would Jesus indict? · Return of the Carlyle Group · Duct tape is for little people · GOP and bad medicine · Sears Tower vs Mt Rushmore · Scared Christians · Crooked playing field · John O'Neill: The man who knew · Back to the top

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