The “K” in the Economy

Private equity and the rise of permanent capital

The consensus is that the road to economic recovery from the COVID-19 pandemic is K-shaped: certain sectors and populations will thrive while others stagnate or decline. Outsized online retailers and digital infrastructure providers, like Amazon, have experienced boom times, while many Main Street small businesses have gone bust. Those with a stake ...
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The “K” in the Economy

Where Is the Risk in the COVID Economy?

A look at shadow banking

We are witnessing a public bailout of the private sector that dwarfs the bailout response to the 2007­–2008 Great Recession. Compared to the $700 billion Troubled Asset Relief Program (TARP) implemented in 2008, today’s mobilization of public funds through the Coronavirus Aid, Relief, and Economic Security (CARES) Act amounts to ...
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Where Is the Risk in the COVID Economy?