11–20 of 362 posts
I don't know the answer here, so Im asking hoping that someone may. Couldn't private equity be seen as the "ants" of the economic landscape? Scraping the skeleton companies of the world for the last bits of meat on the bone and then move on to the next?
If you want to understand what went wrong with America, start with private equity
Lobbying/Bribery seems more egregious than investing. At least investing has some economic forces that cause people to conserve resources and allocate them better than prior. Lobbying/Bribery is just pure corruption. The medical industry is so extravagant because they are among the top lobbyists of all time. Only the entirety of real estate or all US businesses(chamber of commerce) can even compete with merely the Am…
I don't know the answer here, so Im asking hoping that someone may. Couldn't private equity be seen as the "ants" of the economic landscape? Scraping the skeleton companies of the world for the last bits of meat on the bone and then move on to the next?
I don't know the answer here, so Im asking hoping that someone may. Couldn't private equity be seen as the "ants" of the economic landscape? Scraping the skeleton companies of the world for the last bits of meat on the bone and then move on to the next?
Or, they are a self-aware trolley that eats run-over people after choosing to switch tracks to where a bunch of people are tied down.
I think more similar descriptions can be found, but as for what they really are: definitely not the economy immune system cleaning up the remains of dead companies. They are just predatory wealth hoarders. But it's all legal and I'm sure the people making lots of money don't emphatise with the rest of the humans, otherwise they might not be doing it.
If you want to understand what went wrong with America, start with private equity
Lobbying/Bribery seems more egregious than investing. At least investing has some economic forces that cause people to conserve resources and allocate them better than prior. Lobbying/Bribery is just pure corruption. The medical industry is so extravagant because they are among the top lobbyists of all time. Only the entirety of real estate or all US businesses(chamber of commerce) can even compete with merely the Am…
Not when the money is basically free, e.g. the last decade of money policy. PE has always been around, so why is it hated now? Probably the forces that would normally keep it in check, namely, a cost to capital and a competitive business environment (as opposed to monopolies and natural monopolies all over the place) haven't been present in the last decade.
> When KKR buys Toys“R”Us or when Carlyle buys the nursing home chain ManorCare, the debt is held by the company that they bought That right there is what should be made illegal. Somehow. There's probably all sorts of technicalities wherein KKR didn't buy it directly, but as the majority of the board of TRU, authorized the self-purchase or something like that. But you shouldn't be able to force a company to essential…
Perhaps the SEC and DoJ should be considering fraud charges against the ratings agencies, investment banks, brokers, etc. who (in effect) represented that debt as worth ~100 cents on the dollar?
Earlier quoted context omitted.
I mostly agree with this. I would say a lot of what is wrong with America is that corporation laws allow this kind of thing. There are other ways. Nobody thinks Germany is an economic backwater and they require, I believe in large companies, for employees to have a role in the management of the company [1]. There are also co-ops like the Mondragon Coop in Spain[2]. Some states have co-op laws but are mostly used by f…
What I know about PE firms in Europe, they mostly operate the same way as in the US. There are plenty of PE firms and in general to me it feels like they are more popular here than US actually, as with LP's they are perceived as lower risk. What I don't understand from the article, is how the PE firm is able to shift the debt from the buyer to the firm. That shouldn't be possible in any jurisdiction I know a little b…