University of California investment officials said Thursday that their controversial decision to invest $4 billion in private equity giant Blackstone was a “capitalistic decision” to maximize returns for UC retirees and rebuffed criticism that it was worsening theControversy over the investment heated up this week, when more than 40 organizations representing UC faculty, students, workers and statewide housing advocates demanded the university divest from Blackstone.
Blackstone executives have said the fund has “virtually no ability to impact market rent trend” because it owns less than 1% of rental housing in the United States. Only 6% of its housing investments are in California, and more than two-thirds of the residential properties are designated as affordable housing where rents are set by the federal government.
“We believe that UC has a moral obligation to chart a new path, not one that prioritizes Blackstone shareholders but rather one that makes UC students and workers less likely to become homeless,” she said.
Capitalism has greed and no sympathy for the poor and Middle class. No wonder we have world wars.
Well, refreshing to read a bit of honesty. What housing crisis' exist that are not because of 'capitalistic decisions' for the betterment of a select group of retirees?
'capitalistic' is not a dirty word at Berkeley?