You are browsing the archive for Private Equity.

Improvement, yes, but not that much improvement

1:32 pm in Economy, Jobs, Unemployment by dakine01

The Scariest Chart - Calculated Risk

The Scariest Chart – Calculated Risk. Click to embiggen

 

Author’s Note: Please take a few minutes and Join the Firedoglake Membership Program today. FDL provides the tools that help me and others extend our reach with our rants so we need to support FDL when we can.

OK, so you might have noticed a few headlines the last few days talking about how the economy is getting better, unemployment is dropping, and we’re all going to win Powerball tonight and retire tomorrow with our sparkly ponies.

Yeah, I ain’t holding my breath on any of those things either.

Yes, the economy is getting a little better. Slightly. But not to a level to make an appreciable difference to the millions of long term un and underemployed. As David Dayen noted at FDL News on Friday:

The reason that the unemployment rate was able to tick down, however, is that the labor force participation rate remained unchanged at 64.0%. This low participation rate means that, even with the economy growing and the job market improving, a fair number of able-bodied workers have not rejoined the labor force. When they do, and when the labor force participation rate increases, that will put upward pressure on that topline unemployment rate. And unless everyone came into found money, that’s fated to happen. The employment-population ratio also remained unchanged in December (58.5%), despite the job additions. The average workweek and average pay went up very slightly over the month.

Even if those folks who have given up and left the workforce were to stay away and not return, it will still take years for the current problems to right themselves.

Let’s pretend that we stay on the current level of seeing the official unemployment rate drop .2% each month. At the end of 2012, the unemployment rate would be at 6.1%, a number that sounds much better than it has been. But that number would still not be addressing the millions of folks working part time (probably minimum wage) jobs who want full time employment. Nor does it account for all the folks forced into being “independent contractors” or all the college grads from 2008, 2009, 2010, and 2011 still trying to get their first position in their fields.

Just today (Wednesday, January 11), MSNBC had this post with the headline, “Four job seekers for every opening, report shows”: Read the rest of this entry →

These are only problems for the top 1%

12:12 pm in Uncategorized by dakine01

Sign reads: "War On Greed - starring Henry Kravis and his homes" Photo: Brave New Films, on flickr

Sign reads: "War On Greed - starring Henry Kravis and his homes" Photo: Brave New Films, on flickr

Author’s Note: Please take a few minutes and Join the Firedoglake Membership Program today. FDL provides the tools that help me and others extend our reach with our rants so we need to support FDL when we can.

If you read me often enough, you have probably noticed that I tend to check various news and opinion sites throughout the TradMed each morning, after I’ve spent a few minutes reviewing emails and jobs sites. Most of the time, I just shake my head at the various levels of stupidity I find, not being able to quite give it the full YOU HAVE GOT TO BE F*CKING KIDDING ME! treatment so richly deserved. Then there are days like today where teh stoopid is so truly dumbfounding.

Today, we have Henry Kravis, co-founder of private equity firm KKR, sending up a fine whine to Bloomberg on how tighter credit rules are forcing the private equity firms to kick in more of their own money and making buy-outs more expensive. Sayeth Mr Kravis:

“As the debt markets tighten and the cost of capital goes up, something has got to give,” Kravis said yesterday at the Bloomberg Dealmakers Summit in New York. “You just have to pay more.” 

Kravis, 67, said the cost of capital for a leveraged buyout has risen more than 2 percentage points since the firm agreed to buy Pfizer Inc.’s Capsugel unit in April, forcing buyers to put up more cash for deals and borrow less. Uncertainty in the equity markets also is making it more difficult to reap profits through initial public offerings or sales of companies owned by private-equity funds, he said.

…snip… Read the rest of this entry →