Star
Gold Member
- Apr 5, 2009
- 2,532
- 614
- 190
Robert Reich, Labor Secretary in the Clinton administration, explains the magic of Private Equity (vulture capitalism in Mitts case) in 8 easy steps.
Who pays for private equity profits --- WE DO!
- Risk other peoples money
- Buy a company to squeeze higher profits
- Cut workers, pay and benefits to squeeze higher profits out of the company
- Use company as collateral to borrow lots of money to inflate profits
- Company pays back investors immediately
- Sell company for more than they bought it for
- Equity Managers Pocket 20% of the sale even though they never risked their own money
- Equity Managers dont risk a dime and only pay 15% capital gains tax
Who pays for private equity profits --- WE DO!