Tag: Lynn Tilton

Newsflash: Even NBC’s Economy Watch Finally (Somewhat) Wakes Up


Stuck in the Mud

Wow!  Like a fucking parrot I have been repeating the same thing for years now.  But it's okay, I can do it again:

People (not just the economists and market analysts, EVERYONE!), stop applying old concepts to current economic situation!  This was not a recession and we are not experiencing recovery!  This is our new reality.  Get used to it! 

Look at the graph above.  That historical +15.6% gain after severe recessions of the past – it's never going to happen again.  Moreover, even the 1.7% reptilian movement upward, we supposedly experience right now, seems to me miraculous.  And it is definitely not assured – we may start rolling down at any given moment.

The picture is so undeniably obvious, even the politically-controlled outlets, such as NBCNews.com, have no choice but to talk about it.  They are the ones, who published this morning the Credit Suisse's chart above in their Economy Watch blog's post cautiously named "Economy may be permanently stuck in slow-growth mode."  The more appropriate title would be "Economy May Be Permanently Stuck." Period. 

The article is basically a compilation of data and quotes obtained from various resources, including a number of "prominent economists" and the Federal Reserve Chairman Ben Bernake.  The blogger, John Schoen doesn't express his own opinion or adds any commentary.  Nevertheless, the piece as a whole leaves an impression that all cited contributors and the policy-makers are also stuck in a perpetual state of having no clue, of not knowing what to do. 

This doesn't surprise me at all.  These people have been in denial far too long, but they cannot hide from reality anymore.  And now fear seizes their beings, because they start realizing that it's only going to get worse.  It's beyond depressing, it's funereal.

Invariably, one particular tidbit of information puts me into a vile mood, whenever it catches my eye.  In this assortment of bad news Mr. Shoen mentions in passing that 70% of US economic activity comes from consumers.  To me this is a reminder of terrifying fact that our country predominately retails (largely imported goods) and creates services for end users instead of producing industrial products for domestic commercial market or export.  

And it's astonishing that not a single of the quoted "dignitaries," not even for shits and giggles, raises a voice of reason and demands that the politicians stop sticking crutches into the armpits of clay giants and let them fall; that the Feds stop buying long-term bonds with our social security contributions; that the Supreme Justices stop passing laws guaranteeing highest ever compensations for CEOs of health-management companies.  Is Lynn Tilton and I are the only people who understand that only by supporting smaller privately-held DOMESTIC businesses we may be able to revive the economy?  That if "the powers that be" don't start this process right away, the country will become more and more restless? 

Objectivism, Part 2: Lynn Tilton – the Matriarch of Patriarch


Jessica Pressler provided the second mentioning of Ayn Rand, in her long-titled article What Does it Take For a Female Tycoon to Get Noticed Around Here? , which she contributed to New York magazine's issue on the post-crash Wall Street.  It profiles Patriarch Partners' CEO Lynn Tilton and, according to the author, this is how the powerhouse of private equity investment sees herself: as "an Ayn Rand heroine in six-inch heels."

Rightfully so.  This woman is not simply concerned with the state of American capitalism and the future that awaits us ("…I believe that there will… be violence in the streets in America," she says.  "And I think the only thing we can do to stop it is by creating employment."), but she is actually doing something about it – working very hard on trying to rebuild American manufacturing.  Moreover, she is doing that without any regard for the conventions of the phony propriety that has saturated our existence. 

Lynn Tilton destroys the stereotype of a "powerful man" as a world-savior.  A true standard-buster,  just like Ayn Rand wanted women to be, she does not make herself look like the androgynous creatures in buttoned-down suits who are allowed to enter "little boys" clubs from time to time.  She does not let herself to fit into the designated for business tycoons box either.  She refuses to hide her wealth into over-priced art rubbish other billionaires stash in their unseen drawing rooms.  Her conspicuous consumption is honest, because that should not define her.  It has nothing to do with her achievements.  

It is incredibly important to me that Ms. Tilton's  business focus lies in the same field as mine does: the proverbial backbone of the US economy – small and midsize companies.  And it makes the refusal of others to look beyond the outfits, the hair, the jewelry, the mannerism, far more painful.   Once again I am exposed to the violation of my personal absolute truth – MERIT.

Why can't people break out of their constricted mentalities? 

At art fund raising minglings, when I dissect a movie or a play, impressed people, who are paid to be in the know of those things, inevitably ask what I do for living.  I just love seeing their faces when I say, "Accounting and finance."  You see, number-crunchers are not expected to understand the high art.  It does not matter that I know more about it than they do.  On the other hand, when I was entering Economics PhD program, my wild jewfro was diminishing my scientific credibility, even though I came with 50% of my research and modeling already completed. 

Always those fucking labels, those stupid boxes.

I can easily visualize Lynn Tilton going to Harry Winston or Van Cleef & Arpels for some fabulous $250,000 necklace and people in attendance there thinking that she is some mogul's wife.  She must relish the opportunity to tell them, "I am the mogul, bitches!"

It's too bad that Ms. Tilton deals only in private equity acquisitions of distressed businesses and does not diversify into venture capital start-up investments.  I am developing a product right now that has a great potential of contributing into survival of smaller companies and complementing her quest for preserving the true capitalism.  I think we would get along handsomely.  We both know that it's what's inside your head that counts.  She is having trouble getting the respect she deserves, because we lost our meritocracy to "club membership" long time ago.