Byron Wien's Atrocious "Forecasting" May Have Cost Blackstone Hundreds Of Millions

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Thu, 01/06/2011 - 08:39 | 852000 Dismal Scientist
Dismal Scientist's picture

Hilarious, the one time that old fart gets it right, it costs his firm money. Who are the bigger douches, sponging retired public servants or the Blackstone mob for employing him ? 

Thu, 01/06/2011 - 10:31 | 852298 Jake3463
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Well the Hedge Fund is obviously the bigger douche.  Occasionally the public employees actually clean streets, put out a fire, catch a common criminal.

Thu, 01/06/2011 - 10:50 | 852355 Don Birnam
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Speak of the devil, and the devil appears: Ol' "Pequot" Wein was the guest star this morning, along with the other wooden Indians on "Squawk Box."

Interesting, that the old chap would take such a position in opposition to Big Union, biting the pinkie-ringed hands which feed his shop -- and also the fact that Byron was an unapologetic supporter of Barry O'Bama, during Campaign 2008.

Thu, 01/06/2011 - 08:39 | 852001 johnnymustardseed
johnnymustardseed's picture

2011... the year of defaults. State and locals will crash hard. This will lead to much higher unemployment. Welcome to the Third World

Thu, 01/06/2011 - 08:39 | 852003 Oh regional Indian
Oh regional Indian's picture

Blackstone is nothing but a Ponzi front company, re-distributing "wealth" amongst it's "wealth" managers. Their investments are all (mostly) in nudge-nudge, wink-wink type deals.

Check out their Indian investment strategy, mostly in "infrastructure" and real estate, typically the worst offenders in terms of opacity in India. More nudge-nudge.

http://www.ft.com/cms/s/0/193fda74-aa54-11df-9367-00144feabdc0.html

The man is irrelevant. Their money power is dangerous though. it inflates all the wrong things. Send all the wrong signals.

ORI

http://aadivaahan.wordpress.com/2011/01/06/more-museic/

Thu, 01/06/2011 - 08:42 | 852006 Canucklehead
Canucklehead's picture

I suspect the people who write for Credit Writedown and Naked Capitalism will be on the phone to take Blackstone's place.

Thu, 01/06/2011 - 08:57 | 852037 Arius
Arius's picture

give the man another chance. i'll bet he will get 2 or 3 right next time.

Thu, 01/06/2011 - 09:08 | 852059 Dollar Bill Hiccup
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Wien may suck at forecasting but what he says is absolutely true.

taxpayers 'literally can’t afford the benefits we have given our retirees in state and local governments and we have to change that.'"

I might also add that taxpayers can't afford to bail out banks either.

Thu, 01/06/2011 - 10:04 | 852199 Dr. Sandi
Dr. Sandi's picture
I might also add that taxpayers can't afford to bail out banks either.

Hell, at this point most taxpayers can't afford to bail out a small rowboat.

Thu, 01/06/2011 - 12:13 | 852658 rustybenelli
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We will see more outrage in the near future over public sector pension plans.  The sheeple need their angered directed at someone(eat your own).  I never heard a peep from these same sheeple when the banks looted the treasury.  I explained what was going on and all I received were glazed looks.  The govt has gotten its moneys worth from the education system(dumbed down sheeple).  These are my observations from blue collar main st.

Thu, 01/06/2011 - 12:48 | 852840 JR
JR's picture

Watching the attacks on congressmen at last year’s town meetings and the response to Tea Party candidates taking on not only Democrats but Republicans who voted for the bailouts, it may be time to give the term “sheeple” a little rest.  Let’s see what the increasing anger of the taxpayers will produce in their opposition to a leviathan big government and the excesses of public sector employees. IMO, the time is here. :)

Thu, 01/06/2011 - 13:09 | 852935 Things that go bump
Things that go bump's picture

What about federal retirements?  I don't think we can afford those either.  

Thu, 01/06/2011 - 09:15 | 852073 johnnymustardseed
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9 trillion for banks...poverty for everyone else

Thu, 01/06/2011 - 12:51 | 852853 JR
JR's picture

+ $23.7 trillion and counting

Thu, 01/06/2011 - 09:24 | 852090 Salinger
Salinger's picture

the 8k makes interesting reading

my guess is senior managers and partners spend more on gratuities than most readers here pay in taxes

 

http://bit.ly/fDWMND

 

PS Rosie coming up on Bloomberg Radio

 

mms://a1531.l2489849876.c24898.n.lm.akamaistream.net/D/1531/24898/v0001/reflector:49876

 

 

Thu, 01/06/2011 - 09:43 | 852136 Gordon Freeman
Gordon Freeman's picture

Does ZH now have new doubts that these pensions are not absurd??

I despise Wien as much as the next sane individual, but to citicize him for this no-brainer is truly petty.

Thu, 01/06/2011 - 10:13 | 852229 Jake3463
Jake3463's picture

I think it is a zero hedge laughing moment.  Most on here know that the states can't afford the promises they made to their employees.

 

The funny thing in the upside down dystopian nightmare that we live in, is the one time this old fool actually says something that is true and likely to happen, his firm loses money because of it.

 

That is what is sobering, hilarious, and scary at the same moment.

Thu, 01/06/2011 - 09:59 | 852179 FoieGras
FoieGras's picture

Wien is to the perma bulls what the Celentes and Rosenbergs are to the bears.

None of these clowns would survive in a trading pit for more than 15 minutes because they lack a vital ingredient that distinguishes the trader from the economic analyst: the trader understands this game isn't about being right or wrong about the economy, it is about being on the right side of the trade.

Thu, 01/06/2011 - 10:15 | 852234 Jake3463
Jake3463's picture

Celente buys gold and silver and stays out of the market and has been doing it for quite sometime.

 

I think with that strategy, Gerald is doing pretty well.

Thu, 01/06/2011 - 10:30 | 852297 psyclopz
psyclopz's picture

Agreed. Gerald Celente is probably not the trader type, and given that he recommended gold in 2001, even if gold corrected he would still not be too badly burnt. 

Thu, 01/06/2011 - 10:01 | 852187 Commander Cody
Commander Cody's picture

Ooops!

Thu, 01/06/2011 - 10:22 | 852259 Rodent Freikorps
Rodent Freikorps's picture

That's what they get for employing a zombie.

Thu, 01/06/2011 - 10:42 | 852334 eftian
eftian's picture

+

Thu, 01/06/2011 - 12:12 | 852652 JR
JR's picture

Taxpayers 'literally can’t afford the benefits we have given our retirees in state and local governments and we have to change that.'" -- Byron Wien

Facing a public outcry and a flood of letters to editors throughout the state, University of California Regents yesterday denied the request of 36 UC executives earning more than $245,000 a year to lift their retirement annnual pension cap of  $183,750, according to the UC (Los Angeles) Daily Bruin.

Under UC’s formula, which calculates retirement benefits on only the first $245,000 of pay, an employee earning $400,000 a year who retires after 30 years would get a $183,750 annual pension.

Lift the cap and the pension rises to $300,000 a year.

In a Dec. 9 letter to the UC Board of Regents, 36 high-paid executives said commitments were made in 1999 by UC to lift its cap on benefits for individuals making more than $245,000. The IRS lifted its Federal limit cap in 2007, but the increases were never allocated—“because of the economic downturn, that never happened,” according to the petitioners’ statement.

The letter petitioners earned up to $729,000 in 2009. The letter calculates the cost to the University at $50.6 million to raise benefits for some 200 employees.

According to the Daily Bruin, petitioners Yudof and Gould “feel prepared to defend their position in court if necessary.”

References: http://www.dailybruin.com/index.php/article/2011/01/highpaid_uc_executives_denied_retirement_benefits_increase_by_uc_regents

San Francisco Chronicle, Dec 29, 2010

Thu, 01/06/2011 - 12:49 | 852838 Missiondweller
Missiondweller's picture

I read that previously. Their arrogance is absolutely stunning. Even banksters would blush a little after reading that.

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