Tuesday, February 14, 2017
Blackstone Stephen Schwarzman Has A Birthday.
Stephen Schwarzman had a birthday party for his 70th. He spent $10 million . It was in Palm Beach , Florida. The theme was Silk Road. It had camels, Mongolian and Japanese dancing women.We know Schwarzman as the billionaire founder of Blackstone. It's the money manipulating private equity firm that creates wealth out of debt. That's akin to wearing diapers all the time. One doesn't go to the bathroom publicly but at some point the mess has to be cleaned up in private.But then the private moment becomes public and nobody is fooled any longer.Schwarzman bought his 34 room 17,000 square foot duplex 740 Park Avenue digs in Manhattan from the late Saul Steinberg.He was the wonder kin who also parlayed debt to create the highly leveraged computer leasing company LEASCO. He parlayed that to acquire 150 year old Reliance Insurance. He tried to parlay that to buy Disney and/or Chemical Bank. Neither worked out. Chemical Banks tussle with Steinberg was the beginning of the end.Banks don't want to be taken over by debt. That's their own game.Long story short Steinberg went broke and then died in 2012.Steinberg had a birthday party many years prior to the collapse of his debt ladened empire.. It was indeed similar to Schwarzman's lavish conspicuous bash. Saul famously was quoted as telling one or two guests at his party "If I could I would short me."I'm sure that shorting S. Schwarzman is the furtherest thing from Schwarzman's mind. Saul died when he was 73.Saul and Stephen have the same initials!