Transcription
You probably know who this guy is. Pete Hexath, the Secretary of Defense, now the Secretary of War. But he's not really in charge. He's just the TV guy. You know, looks good on camera, gets people riled up.
But there's actually someone else who runs the military. And that guy is billionaire Steve Fineberg, the deputy secretary of defense. He is the Pentagon's chief operating officer, overseeing the day-to-day operations of the agency. He's also the co-founder of Sabaris Capital, which is a defense focused private equity firm.
And guess what he's doing now? Yep, private equity is getting ready to take over the funding of the US Army. Okay, this is reporting from Seore. Quote, "The US Army has turned to private equity to fund an infrastructure overhaul. Two top White House officials met with Wall Street investors last week, part of a Trump administration effort to enlist the $13 trillion private capital industry into public financing."
This is not good because, different than public funding, the only thing that these guys care about is returning money to shareholders. In fact, they have a fiduciary duty to maximize returns. In fact, many people don't know this, but private equity funds are contractually obligated to liquidate within a certain time horizon. And so that means at the end of their investment cycle, they must return money back to the shareholders, no matter what. So in this case, their investment is weapons. So the only possible outcome in which their assets go up is, of course, more.