August 7, 2025 • 9 mins
LISTEN and SUBSCRIBE on:
Apple Podcasts: https://podcasts.apple.com/us/podcast/watchdog-on-wall-street-with-chris-markowski/id570687608
Spotify: https://open.spotify.com/show/2PtgPvJvqc2gkpGIkNMR5i
WATCH and SUBSCRIBE on:
https://www.youtube.com/@WatchdogOnWallstreet/featured
A searing warning about the dangerous rise of private equity in America’s financial system. From inflated valuations and deceptive portfolio tactics to their quiet takeover of single-family housing and 401(k) plans, this episode exposes how private equity firms are gaming the system — and why unsuspecting investors, especially those saving for retirement, could be left holding the bag. If you think your retirement is safe, think again. It’s not just risky — it’s a ticking time bomb.
Apple Podcasts: https://podcasts.apple.com/us/podcast/watchdog-on-wall-street-with-chris-markowski/id570687608
Spotify: https://open.spotify.com/show/2PtgPvJvqc2gkpGIkNMR5i
WATCH and SUBSCRIBE on:
https://www.youtube.com/@WatchdogOnWallstreet/featured
A searing warning about the dangerous rise of private equity in America’s financial system. From inflated valuations and deceptive portfolio tactics to their quiet takeover of single-family housing and 401(k) plans, this episode exposes how private equity firms are gaming the system — and why unsuspecting investors, especially those saving for retirement, could be left holding the bag. If you think your retirement is safe, think again. It’s not just risky — it’s a ticking time bomb.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
We got ourselves time bomb. That's right, we have ourselves
a private equity time bomb. I know I've discussed this before,
and I'm gonna, honestly, I'm going to keep bringing up.
The reason being, I know what's going to happen, and
I know investors are going to get hurt, and unfortunately
it's going to be it's gonna be a lot of
people in their four oh one ks, a lot of
(00:39):
more novice investors out there that are going to fall
prey to this nonsense. Let me just let me show
you some numbers right now again, right now, they're talking
about small companies. Right now, small cap companies with negative
negative earnings by size, Okay, large cap, way down, small cap.
(01:05):
We're looking at up close to forty four percent forty
four percent small companies, private companies, companies that are held
by private equity. Here's another fact for you. First half
of twenty twenty five, investors large amount of these investors,
private equity accounted for about thirty percent of single family
(01:30):
home purchases new construction existing properties. This is the highest
level recorded ever. What's going on? Okay, what's going to happen? People?
And again I was so irate this past week. I've
(01:50):
gotten angry at Jim Kramer in the past, and then sometimes,
you know, I trying to read the guy, and I do.
I think he's actually looking out for investors. Sometimes he
just says some things that are just so damn stupid. Okay,
I want to smack them upside the head, and I'm
not allowed to do that. He's out there talking about
the wonders. He had one of the guys from Apollo there, Oh,
(02:12):
this is gonna be it's a no brainb that we
should allow four O one k is to be investing
in private equity. And he's basically cheering along with this
other bull crap that is private equity is a ticking
time bomb in more ways than one. The valuations, the
(02:35):
valuations that they are paying for companies. I don't care
if it's a freaking veterinary clinic. I don't care if
it's a hospital. How many hospitals are going under in
this country because of private equity. I don't care. I
actually had I actually had someone on my other radio show,
work Time and Effort, where I have business owners on
(02:56):
This guy owns a pet crematorium. Equity wanted to buy him.
They're buying everything and they're paying dumb multiples. Why I'm
gonna explain this again. I know I've explained this before.
This is important, so pay really close attention. What the
hell I'm saying right now? I might just save you
a bundle. Okay, private equity can put a value on anything.
(03:21):
Private equity. Let's take a look at this pen. I'll
do a little bit from the Wolf on Wall Street.
Sell me this pen. Private equity could buy this pen
for a million dollars. Why would you buy this pen
for a million dollars? I don't know where'd I get this? Oh?
I got this at the art Ovation Hotel that's down
(03:44):
in Sarasota when I stayed there. Normal pen, the desk
is worth a million dollars. I could open it up.
Is there any any gold? And then no, no, no,
no no. Private equity could buy it for a million dollars. Okay,
and in their portfolio tell you that it's worth one
point two million dollars. They can, it's it's their portfolio.
(04:06):
They work with their accountants and their people to come
up with valuations for the things that they own. What
do they care what they're paying for it. They're charging
you for it. They're holding on to the pen, holding
on to the pen in a basket of other investments, companies,
real estate, whatever it may be, and they're charging you
(04:30):
or give you a maintenance fee, and they're also charging
the value value of that portfolio goes up. What if
you want to get your money out? What if a
bunch of people want to get their money out? Then
what are they going to do? Because again, how do
you sell this pen to somebody for a million dollars?
Unless they're another private equity company. That's a problem, isn't it.
(04:53):
H Yeah, getting liquid? How do they get liquid? Well, again,
they bring and more investors that would be you and
the greater fools out there that are going to buy
into their private equity offering. You think I'm kidding, go ahead,
(05:15):
doubt doubt me again. I gotta put my shirt on.
Don't doubt me, my don't doubt me shirt on. I've
called everything for crying out loud. You're not gonna listen
to me on this one. Go ahead, no, no, go ahead,
go ahead, go dump all your money into some half
assed private equity company you don't know anything about. Especially
do it to your four one k brilliant idea. It
is going to be a disaster. Not to mention the
(05:36):
fact what they're doing to the country as a whole,
buying up entire neighborhoods of homes. Again again, they're paying cash.
They're paying cash. People ask me, no, there's a difference
tradition a financial crisis. Well, they own the homes outright,
they own them, they can sit on them. They're making
(05:59):
money all off of that home based upon what they're
charging people for what it's worth inside the portfolio. If
they can rent it to somebody bonus. The issue is
is when everybody wants to get out, and that's going
to happen at some point in time. Allowing all of
(06:25):
these private equity companies to buy up neighborhoods to do
all that, has it been good for the country. No,
And there's ways that they could fix this. A lot
of this is made possible due to our absolutely ridiculous
tax code, which has all sorts of funky beneficial rules
(06:46):
and loopholes for people investing in real estate. This, this
has to be this has to be put to put
a stop to this. Okay, this is going to hurt
a lot of people here in this country moving forward,
mark my words. I didn't get the watchdog on Wall
Street Moniker for nothing. We have been at the forefront
(07:08):
of everything, everything since since the prior to dot COM's
The Boy of the Room Operators, dot COM's Enron Dynagy Tycho,
Great Recession, everything we've called it. We've been there, We've helped,
We tried to teach people, tried our best to teach
people to avoid getting ripped off and scammed. I'm trying
(07:30):
again right now, trying don't do stupid stuff with your money.
I don't care. I don't care if some guy comes
in and tells you the benefits of investing in some
sort of private equity fund in your four to one
K I tell you right now, I don't care. You
give them the middle finger, Well, don't do that. It's just
(07:53):
they're not sending anybody big. That's bad. I should say.
They're just a kid. They're just being told what to
do they're just to say, person, okay, in your mind,
do it. Okay, but you're more or less directing that
middle finger at the firm, Yeah, at Merrill Lynch, at
Morgan stanleyt Go, whoever's putting these ridiculous things together. Then
(08:15):
it's actually allowing this. Now. I don't even know how
they maintain their fiduciary duty by allowing something like this,
Probably some sort of caveats saying well, well, we're just
putting them in there. We're not you know, we're not
making them buy. They're gonna pick it what any sort
of portfolio they want. But I guarantee you what they're
gonna do when you fill out the damn stupid questionnaire
when you're signing up for your four one K, it's
(08:37):
gonna ask you, oh, how much time do you have
until you can retire? Well, you can be aggressive, and
private equity is one great way of doing that. No,
it's not, now, it's not. I know these people, Okay,
I know these people. These are the same people. You know.
(08:58):
They have to have those commercials on I remember this
PBS growing up in Sesame Street, brought to you by
Exonomobile and brought to you by the so and so Foundation.
This is brought to you by the same people, the
same people that brought you the whole dot com ruse,
(09:19):
the collapse of Enron, the idea that collateralized debt oblig
I mean a mortgage back. So this is brought you
by the same exact people. Why do you choose to
listen to them? Are there some good offerings that are
out there that are not involved in this this ridiculous
(09:40):
Ponzi scheme, demonic game of musical chairs. Yes there are,
but there are few and far between. Watchdog on Wall
Street dot Com
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
We got ourselves time bomb. That's right, we have ourselves
a private equity time bomb. I know I've discussed this before,
and I'm gonna, honestly, I'm going to keep bringing up.
The reason being, I know what's going to happen, and
I know investors are going to get hurt, and unfortunately
it's going to be it's gonna be a lot of
people in their four oh one ks, a lot of
(00:39):
more novice investors out there that are going to fall
prey to this nonsense. Let me just let me show
you some numbers right now again, right now, they're talking
about small companies. Right now, small cap companies with negative
negative earnings by size, Okay, large cap, way down, small cap.
(01:05):
We're looking at up close to forty four percent forty
four percent small companies, private companies, companies that are held
by private equity. Here's another fact for you. First half
of twenty twenty five, investors large amount of these investors,
private equity accounted for about thirty percent of single family
(01:30):
home purchases new construction existing properties. This is the highest
level recorded ever. What's going on? Okay, what's going to happen? People?
And again I was so irate this past week. I've
(01:50):
gotten angry at Jim Kramer in the past, and then sometimes,
you know, I trying to read the guy, and I do.
I think he's actually looking out for investors. Sometimes he
just says some things that are just so damn stupid. Okay,
I want to smack them upside the head, and I'm
not allowed to do that. He's out there talking about
the wonders. He had one of the guys from Apollo there, Oh,
(02:12):
this is gonna be it's a no brainb that we
should allow four O one k is to be investing
in private equity. And he's basically cheering along with this
other bull crap that is private equity is a ticking
time bomb in more ways than one. The valuations, the
(02:35):
valuations that they are paying for companies. I don't care
if it's a freaking veterinary clinic. I don't care if
it's a hospital. How many hospitals are going under in
this country because of private equity. I don't care. I
actually had I actually had someone on my other radio show,
work Time and Effort, where I have business owners on
(02:56):
This guy owns a pet crematorium. Equity wanted to buy him.
They're buying everything and they're paying dumb multiples. Why I'm
gonna explain this again. I know I've explained this before.
This is important, so pay really close attention. What the
hell I'm saying right now? I might just save you
a bundle. Okay, private equity can put a value on anything.
(03:21):
Private equity. Let's take a look at this pen. I'll
do a little bit from the Wolf on Wall Street.
Sell me this pen. Private equity could buy this pen
for a million dollars. Why would you buy this pen
for a million dollars? I don't know where'd I get this? Oh?
I got this at the art Ovation Hotel that's down
(03:44):
in Sarasota when I stayed there. Normal pen, the desk
is worth a million dollars. I could open it up.
Is there any any gold? And then no, no, no,
no no. Private equity could buy it for a million dollars. Okay,
and in their portfolio tell you that it's worth one
point two million dollars. They can, it's it's their portfolio.
(04:06):
They work with their accountants and their people to come
up with valuations for the things that they own. What
do they care what they're paying for it. They're charging
you for it. They're holding on to the pen, holding
on to the pen in a basket of other investments, companies,
real estate, whatever it may be, and they're charging you
(04:30):
or give you a maintenance fee, and they're also charging
the value value of that portfolio goes up. What if
you want to get your money out? What if a
bunch of people want to get their money out? Then
what are they going to do? Because again, how do
you sell this pen to somebody for a million dollars?
Unless they're another private equity company. That's a problem, isn't it.
(04:53):
H Yeah, getting liquid? How do they get liquid? Well, again,
they bring and more investors that would be you and
the greater fools out there that are going to buy
into their private equity offering. You think I'm kidding, go ahead,
(05:15):
doubt doubt me again. I gotta put my shirt on.
Don't doubt me, my don't doubt me shirt on. I've
called everything for crying out loud. You're not gonna listen
to me on this one. Go ahead, no, no, go ahead,
go ahead, go dump all your money into some half
assed private equity company you don't know anything about. Especially
do it to your four one k brilliant idea. It
is going to be a disaster. Not to mention the
(05:36):
fact what they're doing to the country as a whole,
buying up entire neighborhoods of homes. Again again, they're paying cash.
They're paying cash. People ask me, no, there's a difference
tradition a financial crisis. Well, they own the homes outright,
they own them, they can sit on them. They're making
(05:59):
money all off of that home based upon what they're
charging people for what it's worth inside the portfolio. If
they can rent it to somebody bonus. The issue is
is when everybody wants to get out, and that's going
to happen at some point in time. Allowing all of
(06:25):
these private equity companies to buy up neighborhoods to do
all that, has it been good for the country. No,
And there's ways that they could fix this. A lot
of this is made possible due to our absolutely ridiculous
tax code, which has all sorts of funky beneficial rules
(06:46):
and loopholes for people investing in real estate. This, this
has to be this has to be put to put
a stop to this. Okay, this is going to hurt
a lot of people here in this country moving forward,
mark my words. I didn't get the watchdog on Wall
Street Moniker for nothing. We have been at the forefront
(07:08):
of everything, everything since since the prior to dot COM's
The Boy of the Room Operators, dot COM's Enron Dynagy Tycho,
Great Recession, everything we've called it. We've been there, We've helped,
We tried to teach people, tried our best to teach
people to avoid getting ripped off and scammed. I'm trying
(07:30):
again right now, trying don't do stupid stuff with your money.
I don't care. I don't care if some guy comes
in and tells you the benefits of investing in some
sort of private equity fund in your four to one
K I tell you right now, I don't care. You
give them the middle finger, Well, don't do that. It's just
(07:53):
they're not sending anybody big. That's bad. I should say.
They're just a kid. They're just being told what to
do they're just to say, person, okay, in your mind,
do it. Okay, but you're more or less directing that
middle finger at the firm, Yeah, at Merrill Lynch, at
Morgan stanleyt Go, whoever's putting these ridiculous things together. Then
(08:15):
it's actually allowing this. Now. I don't even know how
they maintain their fiduciary duty by allowing something like this,
Probably some sort of caveats saying well, well, we're just
putting them in there. We're not you know, we're not
making them buy. They're gonna pick it what any sort
of portfolio they want. But I guarantee you what they're
gonna do when you fill out the damn stupid questionnaire
when you're signing up for your four one K, it's
(08:37):
gonna ask you, oh, how much time do you have
until you can retire? Well, you can be aggressive, and
private equity is one great way of doing that. No,
it's not, now, it's not. I know these people, Okay,
I know these people. These are the same people. You know.
(08:58):
They have to have those commercials on I remember this
PBS growing up in Sesame Street, brought to you by
Exonomobile and brought to you by the so and so Foundation.
This is brought to you by the same people, the
same people that brought you the whole dot com ruse,
(09:19):
the collapse of Enron, the idea that collateralized debt oblig
I mean a mortgage back. So this is brought you
by the same exact people. Why do you choose to
listen to them? Are there some good offerings that are
out there that are not involved in this this ridiculous
(09:40):
Ponzi scheme, demonic game of musical chairs. Yes there are,
but there are few and far between. Watchdog on Wall
Street dot Com
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