*"In 2015, Mr. Schwarzman was paid $799" million. Source |
Richard
Mellor
Afscme
Local 444, retired.
Most
working class people don’t follow the goings on in private equity firms like
Blackstone or the parasite that runs it Steven Schwarzman-----but we should.
These
firms are basically money managers, they manage the money of large
institutional investors and charge a hefty fee for doing so. Their lives are basically milling around in
the cesspool of financial management and moneylending that is much like the
swimming pool in the movie The Magic Christian. There has been an ongoing war
between these private equity capitalists and other bourgeois over taxes as the
compensation an investment manager received is taxed as capital gains as
opposed to income which is taxed at twice the rate.
These
characters have accumulated massive amounts of money. Schwarzman is currently worth almost $13
billion dollars and is sought after by heads of state from around the world. He
made $786 million in 2017 and John Gray, the man recently promoted to Chief
Operating Officer and expected to replace him eventually made, $274 million.
When the Obama administration under pressure from competing capitalists
appeared to be favorable to increasing taxes on carried interest, Schwarzman
described it as “A war………like when Hitler
invaded Poland in 1939.” Newsweek
After
the 2007 crash when this wasteful and inefficient capitalist system was dragged
from the edge of the abyss by public funds, Blackstone and Gray in particular
were ecstatic. That same year, the money dealers bought another firm of
vultures, Equity Office Properties (EOP) for $39 billion and the Hilton hotel
chain for $26 billion. EOP, the property of another parasite Sam Zell, worth
some $5 billion who apparently spends 1200 hours a year on private jets, held a
collection of 580 commercial buildings and by the time the dust had settled,
Blackstone made $20 billion in profit.
Schwarzman
and Blackstone, like all scavengers, are loathe to look a gift horse in the
mouth. Some five million people had
their homes taken from them (foreclosures they call it) during the crash and
the banks were laden with bad loans. Of
course, Schwarzman and those like him don’t physically liberate people from
their shelter and throw them out on the street; good gracious, he went to Yale,
he’s a cultured educated man, they have the state’s security forces, sheriffs
or police do it.
Regulators
responded to this situation by pushing the banks to tighten lending
requirements. Schwarzman, being the egalitarian that he is wanted to help, “…we said, ‘Oh my goodness, this could be
huge. Nobody is going to be able to borrow, they’re going to need housing,’ ” Schwarzman told the Wall
Street Journal, “So we
went out and started to buy houses to rent to people.” So Blackstone became quite the landlord
scooping up some $10 billion worth of homes the moneylenders and their police
had taken from those that lived in them. Huge landlords like this traditionally
like their victims under one roof like a tower block as single family homes can
be scattered and miles apart making servicing them time consuming and expensive,
but a good crisis shouldn’t go to waste. A vulture doesn’t pass up a free meal.
The firm also lent money to other landlords.
Schwarzman
counts among his friends Colin Powell, Michael Bloomberg worth some $30
billion, and is very fond of Trump not to mention the Saudi’s. He’s no tight
wad when it comes to spending the money he never actually earned. In February
2017 his birthday party in Florida was reported to have cost $7 million. One of his guests at his birthday party ten
years earlier was Cardinal Egan of New York. The Catholic patriarchy knows whose
ass to kiss.
When
I think of people that support the degenerate racist Trump (Not types like
Schwarzman but workers) it makes me so angry. To blame undocumented workers,
the poor, welfare recipients or other working class people for the ongoing
decline in living standards and quality of life when people like Schwarzman
live on this earth, is not simply stupidity, it is plain cowardice. It is like
blaming the rape victim rather than the rapist because a victim is seen as
powerless and that’s safer than attacking the power or a representative of that
power. In that sense it is not these parasitic billionaires as individuals that
are the problem, it is the system that produces them and that they defend and
propagate.
Like the hogs and poultry in industrial farming that become psychotic and unrelated to their relatives on a family farm or in the field or back yard, humans lose our humanity in the quagmire of capitalist society. Insecurity, fear and alienation drive us mad and separate us from our collective historic past. Like flowers in bad soil we begin to wilt and die. Despite their obscene wealth, wealth accumulated off the backs of workers throughout the world, the Schwarzman’s of this world are the most damaged of all living as they doo off the profit of capital. The vicious, competitive environment that is their world destroys them. Man is born to labor and the bird to fly, the prophet Job is quoted as saying in Judeo/Christian mythology. The US ruling class of which Schwarzman is a dominant figure do no productive labor. They have no real friends as association with other human beings for them is all part of business, bribing, handwringing, building connections everywhere that can ensure the money train stops at their station.
Like the hogs and poultry in industrial farming that become psychotic and unrelated to their relatives on a family farm or in the field or back yard, humans lose our humanity in the quagmire of capitalist society. Insecurity, fear and alienation drive us mad and separate us from our collective historic past. Like flowers in bad soil we begin to wilt and die. Despite their obscene wealth, wealth accumulated off the backs of workers throughout the world, the Schwarzman’s of this world are the most damaged of all living as they doo off the profit of capital. The vicious, competitive environment that is their world destroys them. Man is born to labor and the bird to fly, the prophet Job is quoted as saying in Judeo/Christian mythology. The US ruling class of which Schwarzman is a dominant figure do no productive labor. They have no real friends as association with other human beings for them is all part of business, bribing, handwringing, building connections everywhere that can ensure the money train stops at their station.
It
always fascinates me when workers think that a person that has accumulated $12
billion, or $20 billion like the celebrity Oprah, will actually serve our
interests. To accumulate such amounts, and particularly to keep it, one has to
be the most ruthless of human beings. In its buying binges, Blackrock has owned
many different types of businesses from the Weather Channel to Sea World. What
is produced matters not to the capitalist, whether they invest in so-called
leisure for the masses or food we need to eat, profit is the determinant, what
is produced is incidental.
"I want war, not a series of
skirmishes... I always think about what will kill off the other bidder." Schwarzman said of his
business activity. When financial war halts, physical one ensues. Schwarzman, a
Jew, is in deals with the Saudis. They don’t let religion or nationality become
and obstacle to money making. People die, business must go on.
One
business Schwarzman and Blackstone acquired was Sea World. If the reader hasn’t
seen it I recommend the
movie Blackfish which delves in to this business and also the eventual
death of Sea World trainer Dawn Brancheau who was
killed by an Orca she worked with in 2010. The film also gives some insight
in to Orca’s and their family relationships and habits as well as the brutal
treatment the Orca’s received at Sea World.
Obviously
concerned with the negative impact Brancheu’s death would have on profits
Schwarzman blamed her for violating safety rules (somehow I don’t think the
billionaire was on the job every day.) Sea World "had one safety lapse -- interestingly, with a situation where the
person involved violated all the safety rules that we had," Schwarzman
told the media. The company has since made some half assed excuse for his
statement but that’s how they think. Profits over life itself.
Schwarzman’s
comments were no accident. A comment
like that alone is enough to destroy any fantasized idea a worker might have
about people in his world being decent human beings. It never hurt him anyway.
His wealth doubled, and in 2016 he hit a lucky streak making
$250 million in five days. Ain’t
life grand?
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