Saturday, January 31, 2009

Prescient David Rubenstein Speaks for Obama at WEF

Carlyle co-founder David Rubenstein revealed the coming "mother of all stimulus packages" in Anchorage, Alaska. He did so weeks before politicians publicly mentioned any stimulating words. David's latest revelation came at the World Economic Forum, where he leads the effort to redesign the global financial system, such that it continues to favor private equity underwriters (PEU's).

An Australian paper reported on world anger over Obama's stimulus plans requirement to buy American steel for projects. David weighed in on the controversy:

Asked about the "buy US steel" plan that alarmed the Australian Government, Mr Rubenstein stunned the conference by saying the protectionist clause in the Obama Administration's economic stimulus plan would not proceed.

Mr Rubenstein insisted that it was placed in the package by the new Administration to allow "a few people to let off steam". While the US President would not make any big statements, the ban on use of foreign steel in big US infrastructure projects would not remain.

Mr Rubenstein's statement, welcomed immediately by Australian Trade Minister Simon Crean, sparked alarm but its shaky status was confirmed just a few hours later. "The Administration is reviewing that provision," said White House spokesman Robert Gibbs. "It understands all of the concerns that have been heard not only in this room."

David Rubenstein speaks, Obama listens. Instead of "My broker is E.F. Hutton", it's now "My PEU is the Carlyle Group". Everybody stop and listen, something noteworthy is coming, sure to pump up Carlyle's profits. Carlyle has a steel company to sell, after the Russian firm reneged on the $3.5 billion deal. Did Carlyle' Mack McLarty call Rahm Emanuel or did David Rubenstein speak directly with President Obama? Either way, the message was heard and reflected by Obama's spokesman.

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