In the Shadows

Source: Getty Images

Wednesday, February 25^th, 2026

Bill Bonner, from Paris, France

Poor Jeff Epstein. The kindest word you will hear about him in the press is that he is dead. Apart from that he is a ‘monster’...an ‘evil’ man...a ‘criminal’. Anyone who had anything to do with him, too, is now denying it. The New Republic:

Howard Lutnick Exposed for Even More Lies About His Epstein Ties

The commerce secretary said he cut off contact in 2005. Emails in the Epstein files show otherwise.

We are disappointed. Even more reprehensible than Epstein himself is the way his former friends have dumped him. To a man, they ‘cut off ties’...and claimed they ‘never met the man.’

And now, everyone who ever sent him a birthday card is expected to apologize...and get a defense attorney.

It almost makes us feel sorry for him. No one recalls Epstein’s warm smile...or his generosity. “What kind of a girl do you want,” he would offer his guests.

We wonder what was said about him at his funeral. ‘He was kind to pets,’ one orator might have offered. ‘He recycled his trash,’ another might have added. ‘He was a good friend,’ was bound to come out.

But why then was no one a good friend to him? One of the victims, for example, told the FBI that Epstein had helped Lutnick make millions of dollars on New York real estate. And yet, Lutnick treated the dead man like a pariah.

If Jeff Epstein were quoted on the Dow, he would probably be an extreme bargain. Everyone who could has already dropped him. His stock probably would be selling at a deep discount. The press carries only negative stories on him. And everything he ever touched is viewed with suspicion if not outright disgust.

And since no one else will stand up for him...we won’t either. But we will at least admit that Epstein’s stock is probably oversold.

As far as we know, Epstein may have taken advantage of his victims. But at least he didn’t kill them. Or even rob them. Neither George Bush, Barack Obama, Joe Biden, or Donald Trump can say that; all of them ordered killings...murders...and bombings. Donald Trump now worries that he might not make it into Heaven. We don’t know, but we’d suggest he renounce his sins and seek redemption as soon as possible.

As for Epstein, he must have been a pretty good spy. His friend list included the richest, most powerful people on the planet. Some went along for the fun. Others had darker motives.

Les Wexner, for example, claims Epstein was just a very clever ‘con man.’ Associated Press:

The billionaire behind the retail empire that once blanketed shopping malls with names such as Victoria’s Secret and Abercrombie & Fitch told members of Congress on Wednesday that he was “duped by a world-class con man” — close financial adviser Jeffrey Epstein. Les Wexner also denied knowing about the late sex offender’s crimes or participating in Epstein’s abuse of girls and young women.

“I was naive, foolish, and gullible to put any trust in Jeffrey Epstein. He was a con man. And while I was conned, I have done nothing wrong and have nothing to hide,” the 88-year-old retired founder of L Brands said in a statement to the House Oversight and Reform Committee released before his interview.

Epstein, had he not been strangled before he could spill the beans, could probably sue for defamation. Wexner must have some of the highest paid lawyers, accountants, and financial advisors in New York. Did they allow themselves to be ‘duped’ by a two-bit crook from Brooklyn? Didn’t they spot the con? Or were they not supposed to?

Wexner claims to be an innocent businessman. But not everyone thinks so. From Drop Site:

In 1991, the Columbus Police Department was investigating the mob-style assassination of Arthur Shapiro, an attorney whose firm worked for The Limited. In March 1985, Shapiro was due to testify before a grand jury in a major tax evasion case — but the day before his testimony, he was shot twice in the head, at point-blank range, in his car outside a Columbus cemetery.

In June 6, 1991, a Columbus police analyst submitted an internal memo that suggested Wexner’s business was connected to organized crime. The memo identified several Wexner corporate entities formed by the slain lawyer’s office, some of which appeared to be linked to Wexner’s New Albany property development. Epstein’s name later appeared as an officer of some of these same companies when they were dissolved a few years later.

We have our own remote recollections on the subject.

Many years ago, we were interested in what really went on at Mena airport in Arkansas. Rumors claimed that it was a drop site for cocaine smuggling...and had been given a pass by the Clintons. The ‘liberal’ press didn’t want to follow the story, so we followed it ourselves. We hired an investigative reporter, Chris Ruddy (now at the head of NewsMax), to go down and see what he could find out.

The results were not conclusive. But later, we learned that the suspicious air traffic, by Southern Air Transport, had been re-routed to Columbus, Ohio. Another of those strange coincidences?

The story of the Iran-Contra caper is long, sordid and complicated. But in its cast featured many of the appalling characters who now play a role in the Epstein saga. There is the CIA, for example...the mafia...lowlifes...high lifes — there is even Ghislaine Maxwell’s father laundering money for Israel (which was shipping weapons to Iran)...and Barry Seal....who flew his gun-running missions out of the very same airport that Epstein turned into Southern Air Transport’s headquarters — in Columbus, Ohio.

We don’t pretend to understand it in any detail. Nor will we go into the ‘weeds’ of how, out of 20,000 airports in the US, the drug smugglers/CIA airline would choose the one used by Les Wexner’s import empire. Epstein, Wexner’s very close associate for 20 years, apparently helped to broker the deal.

Another long-time friend who gave Epstein the heave-ho was Donald Trump. Epstein became persona non grata at Mar al Lago; Trump explained why:

“He stole people that worked for me. I said, ‘Don’t ever do that again.’ He did it again, and I threw him out of the place...”

And then there was another monumentally disloyal friend, Leon Black. He says he was blackmailed by Epstein. Black paid Epstein $158 million. What for? It appears Black really was being blackmailed. If so, it is one for the record books. The details are murky. The Russian girl involved demanded $100 million. How much Epstein got, we don’t know. But Black and Epstein were apparently still friends, as Epstein was giving him advice on how to deal with the ex-mistress. He might threaten to have the Russian secret service bump her off, Epstein suggested.

What a world! What a show!

Sex. Violence. Money. Rich people. Powerful people. Jerks and jackasses....all of them. So, let’s give poor Epstein some credit. We have him to thank for hours of fun for journalists, conspiracy theorists, spooks, prosecutors...the cover-up folks at the Department of Justice...and many more.

Regards,

Bill Bonner

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Research Note, by Dan Denning

The big mean-reverting crashes in public stock markets are often triggered by small incidents in private markets, from companies or funds hardly anyone has ever heard of…until they become infamous. We used to call that ‘shadow banking,’ financial decisions that happen in the dark corners of the financial system.

Blue Owl Capital is a big player in the $1.8 trillion private credit market. That’s where pension funds, wealthy individuals, and insurance companies seek (and in bull markets…get) higher returns by loaning money directly to firms that otherwise can’t get money from banks (banks are also big lenders to private credit firms). Do we have a problem lurking in the shadows?

The problem is liquidity. Or a ‘liquidity mismatch’ to be specific. Loans made by private credit are often long-term. When investors want their money back quickly, for any reason, they may not be able to get it quickly (or at all). Blue Owl halted redemptions one of its funds recently (and had to sell other assets to meet redemption requests). Risky and illiquid loans made privately during a credit boom? What could possibly go wrong?