Apple iPhone Will Fail in a Late, Defensive Move by technology prognosticator Matthew Lynn.
Archive for April, 2012
Below is a link to a great video explaining how private equity works. Yes, it explains why Mitt Romney is rich as hell, but that’s a point I’ll address later. The more important thing to remember here is that it’s not just the credit default swap, but a multitude of sins that contributed to the bum-rushing, pimp-slapping, cheap-shotting, and ass-raping of the American economy. Credit default swaps were just the most visible. Add to that the ponzi schemes which were basically the kick to the nuts while the economy was doubled over and covering its head, and you have the current state of affairs were in today.
Before the detractors out there start screaming “Liberal media! Liberal media!”, having worked for a company owned by a private equity firm, I can unequivocally say that many of the steps that Reich goes through I saw play out in front of my own eyes.
When you finish watching the video, there are some uncontravertable facts you have to take into consideration this election year:
- All of this is legal. Each step in the PE process, in and of itself, is within the law. In fact private equity firms depend on established law in order to do what they do.
- None of this is ethical. The steps, when combined, illustrate a clear goal of profit via the slow bleeding of an entity, which is inherently unsustainable. They either profit by liquidation, or they profit by artificially inflating a stock price just prior to selling it off, in order to mask debt and cost-cutting measures.