Blackstone Group: Wall St. Alchemists Vs. World's Resources

The long-awaited initial public offering of Blackstone Group ( symbol, BX ) is history. The IPO price of 31 was a bargain as brisk, subsequent open-market trading saw the issue rise another 20% to app. $38. That price values the entire company at app. $40 billion.

What real world effect does that alchemical Wall St phenomenon have? Well it creates $ 40 billion of new wealth in a blink of geological time so frivolous monkeys can borrow against or spend in the world's irreplaceable natural resource bazaar. Wouldn't it be nice if it were that easy for forests, lakes, pollution-free air to be created?

Hedge Fund Operators & Politicians

Stephen A. Schwarzman, co-founder of the giant hedge fund Blackstone Group, is throwing himself another expensive, conspicuously consumptive party. This multi-million dollar affair hails his 60th birthday. He's a perfect example of the billionaire hedge fund operators that are increasingly rolling off of America's financial entrepeneur assembly line. He deals in the abstract of the industrial revolution. He deals in paper that represents physical assets and peoples jobs. Wall St. is the incarnation of this kind of alchemy. Wealth is created without a creative product.

But in Mr. Schwarzman's defense, his function is more legitimate than our politicians. Talk about alchemy! Our reps in government auction off the rights and products of their constituents to the lobbies with the highest bids. The expensive, conspicuously consumptive parties that these poltical parties throw are paid for by campaign contributions. The political alchemists only add their abundant hubris to promote themselves.