How about this for some financial INNOVATION?

[TheCoxwain]

Ingredients:

1 Perfectly Good Company ( good balance sheet,great products)
3~4 Private Equity Firms
50%+ Lawmakers Friendly to Deregulation


Mix all the ingredients together - You will end up with

Rich Investment Bankers
Lawmakers with overflowing campaign chests

Investors holding their bags
Employees tossed aside like used condoms
A raped and a pillaged company.


What am I talking about?



Read more http://www.nytimes.com/2009/10/05/business/economy/05simmons.html?_r=1&hp


I am not posting a snip ... as I want you to read the article and see how Blood Sucking Leaches and Maggots pass of as "FINANCIAL INNOVATORS"... These despicable creatures are hollowing out America from within. And all of it is perfectly legal !!!!

[havocmom]

1. K&R

[AllentownJake]

2. They made a movie about this in the 1980s

It was called Wall Street.

[liberal N proud]

3. GREED!

America has long been about greed, it goes way back to when this country started to expand if not before.

Today in America there is only one thing that matters...




Profit for the shareholder in the current quarter. Nothing else matters.

Executives will max out the lending limits or sell everything if that is what it takes to show a profit for the current quarter not worrying about the next quarter until then.



GREED killed America!

[JHB]

4. I posted the snip...

And implored everyone to read the whole thing.

This is the LBO's and junk bonds from the 80's still inoperation, and this sort of nonsense has been the primary engine for gutting our industrial base and destroying good-paying jobs.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=6699992&mesg_id=6699992


In most cases there's nothing particularly unprofitable about these companies, until these swindlers load them up with debt and then proceed to bleed them dry, shuffling as much cash into their own pockets as they can get away with.

[JHB]

5. Same story, back in '92:

A book to look up. Chapter 1 is online (see below)

America: What Went Wrong?
by James B Steele, Donald L. Barlett
Paperback: 252 pages
Publisher: Andrews McMeel Publishing (January 1, 1992)
ISBN: 0836270010
"Worried that you are falling behind, not living as well as you once did?..."
http://www.amazon.com/America-Wrong-Donald-L-Barlett/dp/0836270010/ref=ntt_at_ep_dpt_4

Chapter 1 of "America: What Went Wrong" can be found here:
http://www.politicalindex.com/wrong1.htm

[asdjrocky]

6. It's them against us.

People that haven't figured that out are still asleep.

[Omaha Steve]

7. K (#4) + R!

Great post.

OS

[havocmom]

8. Kick for the night shift. This is good stuff for people to understand

Working people are being hurt. People are being impoverished. It is NOT through their own actions like the GOP suggests.

[RagAss]

9. Used condoms....got that right !

[bertman]

10. Legal. It's all legal. Stories like this make me want to cry from exasperation. How can

we make these alleged human beings who do this stuff pay out the nose?

These people make their millions and become invisible. No one knows where they are or what they have done. But they're living like kings after destroying the lives of hard-working people. And they're undermining the foundations of our nation for their personal enrichment.

[unblock]

11. this is but a small example of the major problems with our unregulated economy --

the real problem is that as soon as you go public, you open the door for others to come in and ruin your company.

if you prudently avoid debt, others will see that you are underleveraged relative to your industry peers, and if times are good, you can make more money by borrowing more to earn even more. i.e., you are undervalued relative to your industry peers, and are therefore a takeover target.

you can't win once you go public. you give up control and you have to go with the industry standard flow, no matter how stupid or short-sighted it is. yes, to some extent, you can put your own mark on your company, but you can't diverge too much from the norm.

even if you retain 50+% voting control, you still can't ignore the minority shareholders. they can sue if you don't act in their interests.


want to retain prudent, low levels of debt? don't go public, ever.