That means public pensions might be forced to dump their holdings in public-backed investments to provide private-equity firms with emergency casha move that could depress the stock market even further. After the United States engaged in a high-stakes negotiation with Russia and Saudi Arabia to curtail production, a tentative deal was struck on Thursday. (This may not surprise anyone who is attempting to be productive while working in close quarters with their children.). Manage all aspects of the daily operation for Ham Conversion, processing up to 1.5 million lbs/day . 2 FOR DRIVE-THRU TESTING RESULTS: Lab samples are sent to an off-site laboratory and results may take 1 to 2 days or even longer in some instances or in times of peak demand. In 2019, the American Investment Council (AIC), a lobbying group which represents private-equity giants like Blackstone, the Carlyle Group, Apollo Global Management, and KKR, declared that in order to continue to provide the benefits they guarantee, pensions must continue to invest in private equity.. It once seemed utterly unattainable until the advent of fracking, which unleashed a torrent of oil. We asked three experts two immunologists and an epidemiologist to weigh in on this and some of the hundreds of other questions weve gathered from readers recently, including how to make sense of booster and test timing, recommendations for children, whether getting covid is just inevitable and other pressing queries. Even before the coronavirus crisis, the spigot was drying up. How will the virus continue to change? After nearly bringing down the economy in 2008, how is it possible that Fannie Mae and Freddie Mac are still around? The title and release date have not yet been determined. We need private equity, we need more of it, and we need it now, chief investment officer Ben Meng said in early 2019right before CalPERS hired a former private-equity guy, who began his career at Goldman Sachs, to head its private-equity efforts. Thanks to the $2 trillion bipartisan bailout bill, the industrys coronavirus losses will belong to all of us. Sign up for our daily Hive newsletter and never miss a story. McLean is a contributing editor at Vanity Fair and co-author of the Enron book The Smartest Guys in the Room. The big banks emerged from the financial crisis victorious, but also subject to a host of new regulations designed to reduce leverage and stabilize the economy. Regarding another ongoing Covid danger, that of reinfections, a virologist sets the record straight: There has yet to be a variant that negates the benefits of vaccines.. The 42 Best Romantic Comedies of All Time, The 25 Best Shows on Netflix to Watch Right Now. Certainly, President Trump, who has staked so much on the American shale industry, wants to save it. Coronavirus outbreaks were reported by the Merced County Department of Public Health at New Bethany Residential Care retirement home in Los Banos and Dutch Bros Coffee. In 2019, Mclean launched a podcast titled Making a Killing on Luminary. Even as the public equity and debt markets grew cautious, drilling continued. Novavax Inc said on Thursday it would require six months to produce a COVID-19 vaccine designed to match whichever coronavirus variants are circulating for an annual immunization program each fall . FILE - In this Friday, June 12, 2020 file photo, a nurse uses a swab to perform a coronavirus test in Salt Lake City. A hydraulic fracturing site in Denton, Texas. Infuriatingly enough, the financial crisis in 2008 might even have saved private-equity firms from their sins. (AP Photo/Rick Bowmer), (Rick Bowmer, Copyright 2020 The Associated Press. Americas energy independence was an illusion created by cheap debt. If private equity is handed billions in taxpayer money, it could use some of it to pay themselves hefty fees today, then pocket even more of it down the road, when they sell their portfolio companies and collect their 20% of the taxpayer-enabled gains. FILE - In this Friday, June 12, 2020 file photo, a nurse uses a swab to perform a coronavirus test in Salt Lake City. Unfortunately, there isnt really an alternative to providing private equity with federal funds. All we know for sure is that fracking company executives and private equity financiers have made a fortune by touting the myth of energy independence and they wont be the ones who have to pick up the pieces., Bethany McLean, a contributing editor at Vanity Fair, is the author of Saudi America: The Truth About Fracking and How Its Changing the World.. One is the so-called Paycheck Protection Program (PPP), set up to make $349 billion in government-guaranteed loans available to businesses with fewer than 500 employees. She was previously married to Christopher Roberts Wilford. Hours Moodys, the rating agency, said that in the third quarter of 2019, 91 percent of defaulted U.S. corporate debt was due to oil and gas companies. Not only should taxpayer funds not be used to pay management or consulting firms, she says, but companies that take the money should also, for instance, be required to include workers on their corporate boards and gradually increase their minimum wage to at least $15 an hour. A college student in Indiana died in her dorm room after testing positive for the coronavirus, school officials and her family said. Bethany McLean is a journalist and contributing editor for Vanity Fair. On March 10, Scott Sheffield, the chief executive of Pioneer Natural Resources, a major driller in the Permian Basin, told Bloomberg that U.S. oil output could fall by more than two million barrels per day by next year if prices remain where they are today. McLean was born in Hibbing, Minnesota on December 12, 1970. [9], In September 2018, she published Saudi America: The Truth about Fracking and How It's Changing the World which examined the "fracking revolution" and U.S. energy independence. Unlike venture capitalists, who provide start-up funds to new companies, private-equity firms generally take over existing businesses, usually by borrowing large sums of money. You can see how all of this is playing out by looking at Occidental Petroleum. The book was later made into the Academy Award-nominated documentary Enron: The Smartest Guys in the Room. This week, Kate and Daniel talk to Bethany McLean, author most recently of Saudi America: The Truth about Fracking and How Its Changing the World as well as the bestselling The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron, with Peter Elkind. These firms not only have a record $1.5 trillion in cash on the sidelines, waiting to be invested, but their CEOs are among Americas richest executives. Previous to her current roles, McLean was an editor-at-large at Fortune Magazine. In the Season One finale of Making A Killing, Bethany brings back her friend, colleague and co-author Joe Nocera (Bloomberg Opinion columnist and creator of The Shrink Next Door podcast) to bookend the season with a lively analysis of the former head of Nissan Motor Co. and Renault S.A., Carlos Ghosn. Contents 1 Early life and education 2 Career Bethany McLean is a Vanity Fair contributing editor. This week, Ms. McLean begins promoting her new book, "All the Devils are Here," about the current financial crisis. But it doesnt have to be a blank check. Wed like to hear what you think about this or any of our articles. The immunobiologist Akiko Iwasakiwrites that new vaccines, particular those delivered through the nose, may be part of the answer. Mortgages should be used to buy homes, not for refinancing. Tens of thousands of Texans are being laid off in the Permian Basin and other parts of the state, and the whole industry is bracing for worse. Bethany McLean. Investors were willing to do this only as long as oil prices, which are not under Americas control, were high and when they believed that one day, profits would materialize. The technology of fracking in shale rock - particularly in the Permian Basin in Texas - has transformed America into the world's top producer of both oil and natural gas. 2023 Cond Nast. David Wallace Wells writes that by one estimate. The active outbreak list is intended to inform the public of the current COVID-19 outbreaks in Los Angeles County. The value of West Texas Intermediate crude, a U.S. benchmark, dipped below zero for a few hourstrading as low as negative $40 a barrel. Until the capital markets began to get suspicious, private equity investors could flip companies they had funded to larger, public companies, making a profitable exit regardless of whether or not the underlying business was making money. That, too, is ending, as investors in such funds have become disillusioned. [12], McLean married Chris Wilford in 2000 and divorced in 2006. [1] In 1992 she received a B.A. McLean started her career as an investment banking analyst for Goldman Sachs[2] and joined Vanity Fair as a contributing editor in 2008. McLean is a contributing editor at Vanity Fair and co-author of the Enron book The Smartest Guys in the Room. She is known for her writing on the Enron scandal and the 2008 financial crisis. There are several pots of federal money that the private-equity industry is lobbying to access. Check out the full Hot & Bothered archive here. According to the Institutional Limited Partners Association (ILPA), a lobbying group which represents CalPERs and other public investors, businesses backed by private equity employ more than 8.8 million Americans at over 35,000 companies, accounting for a staggering 5% of the United States GDP. In 2018, according to analytics firm eVestment, pension funds in the U.S. and the U.K. pumped 27% of their fresh allocations of money into private-equity funds, up from 25% the year before. But they wont fix its fundamental problem with profitability. Blackstones Schwarzman has ties to Trump. Latest trends. But among those angling for a federal handout is one of the wealthiest sectors of the American economy: private equity. He and McLean previously worked together on All the Devils Are Here: The Hidden History of the Financial Crisis, about the 2008 market crash. There were rumblings that shale companies would seek a federal lifeline. In early 2015, the hedge fund manager David Einhorn announced at an investment conference that he had looked at the financial statements of 16 publicly traded shale producers and found that from 2006 to 2014, they spent $80 billion more than they received from selling oil. Bethany McLean is a Vanity Fair contributing editor. Bill White wants to restore Americas historical proclivity for balanced budgets. [17], Last edited on 21 November 2022, at 20:31, "Hibbing grad warns of economic crisis below ground", "What Working At Goldman Sachs Taught Legendary Business Journalist Bethany McLean", "Meet Patrick Byrne: Bitcoin Messiah, CEO of Overstock, Scourge of Wall Street", "BYRNE'S HOT MAIL; OVERSTOCK CHIEF'S TEMPER ERUPTS IN MESSAGES", Financial System's Top Risk, Hiding in Plain Sight, "U.S. mortgage giants under the microscope", "Loughlin, Giannulli lawyer is prosecutors' 'worst nightmare', "Q & A with Bethany McLean, Author of 'All the Devils Are Here', "Enron tale author Bethany McLean has a new book she wrote from her Chicago home", https://en.wikipedia.org/w/index.php?title=Bethany_McLean&oldid=1123096713, This page was last edited on 21 November 2022, at 20:31. Its thanks to those who are able to contribute that were able to make the podcast free for anyone to listen to. All rights reserved. Click here to take a moment and familiarize yourself with our Community Guidelines. Veuer's Tony Spitz has the details. Fueled by debt and years of easy credit, Americas energy boom is on shaky footing. Beleaguered pension funds, which suffered big losses in the financial crisis, could no longer count on decent returns from fixed investments, given how low interest rates have been kept by the Fed. Increasingly desperate to boost the portfolios of retiring workers, they too turned to private equity as their saviorurged on by private equitys promises that it alone could deliver the necessary returns. Deaths, active cases . She co-authored a book on the 2008 financial crisis titled All the Devils Are Here. By signing up you agree to our User Agreement and Privacy Policy & Cookie Statement. On the surface, it appears that two unforeseeable and random shocks are threatening our dream. Jack Ewings Faster, Higher, Farther is more than the story of a scandal. About Bethany McLean is a contributing editor at Vanity Fair. The typical fee structure in private equity is the so-called 2 and 20, which means that a fund collects a fee of 2% of the total assets it manages, as well as 20% of any gains on its investments after a certain return is achieved. All rights reserved). Policymakers who wanted to tout energy independence disregarded all this, even as investors were starting to lose patience. The industry also quietly helps itself to yet more money by having portfolio companies pay fees for consulting and financing services provided by, of course, their private-equity backers. She is also a columnist at Yahoo Finance and a contributor to CNBC. But that didnt seem to matter, because low interest rates facilitated private equity in another way. in English and mathematics from Williams College. 2023 Cond Nast. According to the CARES Act, companies can only receive loans from the Small Business Administration if they commit to preserving jobs. Clients who show symptoms of COVID-19 (for example have a fever, cough, or difficulty breathing) and/or are waiting for their test results. The basic reason is that the amount of oil coming out of a fracked well declines steeply after the first year more than 50 percent in year two. Energy independence was a fever dream, fed by cheap debt and frothy capital markets. All thats left to tally is the damage. Portfolio, a Penguin Random House imprint, announced Wednesday that the two had reached an agreement for a news-breaking, character-driven narrative revealing the forces that rendered critical American institutions ill-equipped to cope with the deadliest pandemic since the 1918 Spanish flu and the economic consequences of that failure.. By Bethany McLean Coronavirus May Kill Our Fracking Fever Dream America's energy independence was an illusion created by cheap debt. BLOOMINGTON A total of 208 new COVID-19 cases have been reported by the McLean County Health Department from Jan. 27 through Friday. The SHIELD saliva-based testing is available for all ages. How concerning are things like long covid and reinfections? Its a rich history of a company, and a case study in how a corporate culture can turn toxic. One of the key principles behind private equity is that increased leverageaka more debtcan make a business function more efficiently. Looking for more? on March 2.Read more about the C.D.C . In September 2015, she published Shaky Ground: The Strange Saga of the U.S. Mortgage Giants which examines the governance and financial situation of Fannie Mae and Freddie Mac seven years after the 2008 financial crisis. The book, which she wrote from the couple's home, puts a human face to the crisis. This location, as with the other County contracted medical sheltering sites, will accept individuals from the local community that are referred through DPH. More than 100,000 people already have died in this country from the virus. Bethany College will continue to adapt and collaborate as needed to encourage vaccines and boosters for staff and students. So if Blackstones investments crater, the teachers, firefighters, and health care workers who are counting on those investments to generate the returns necessary to pay their pensions will suffer. As for Pelosi, she doesnt want to see companies backed by venture capital excluded from federal relief, given her Silicon Valley constituents. Rasmussen points out that after the financial crisis in 2008, the Federal Reserve set a limit on the amount of debt it considered prudent. Thats because oil fracking has never been financially viable. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Cond Nast. The Wuhan Institute of Virology, the cutting-edge biotech facility at the center of swirling suspicions about the pandemics onset, was far more troubled than previously known, explosive documents unearthed by a Senate research team reveal. NEW YORK (AP) Business writers Bethany McLean and Joe Nocera are collaborating on a critical take of the U.S. response to the coronavirus pandemic. On the other hand, Democrats, including House Speaker Nancy Pelosi and powerful Representative Maxine Waters, have weighed in loudlyon the industrys behalf. This week, Kate and Daniel talk to Bethany McLean, author most recently of Saudi America: The Truth about Fracking and How It's Changing the World as well as the bestselling The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron, with Peter Elkind. She has co-authored multiple bestselling books, including The Smartest Guys in the Room and All the Devils Are Here. The Next Financial Crisis Lurks Underground, Coronavirus May Kill Our Fracking Fever Dream. I dont think any of us can really believe what we saw today, one industry analyst told AP. What the Theranos trial says about the blurred lines between visionaries and frauds. A journalist profiles the developers and devotees who have aided the rise of cybercurrency.
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