Posted on 02/01/2010 8:10:01 AM PST by SeekAndFind
In the banking industry in 2009, the rich got richer -- which has, of course, infuriated much of the nation.
But that same basic idea, mostly minus the public infuriation factor, is playing out across the business world.
The Great Recession has killed untold numbers of small firms, many of which were unable to line up financing to keep their operations afloat.
But money is no problem at all for corporate America. And the biggest businesses don't need banks, at least not for loans. As the credit crisis has eased, they've been able to turn to the welcoming arms of the bond market.
Recessions always are about the weak falling away while the strong survive. But this time around, the credit crunch has remained so severe for smaller firms that the advantage has been magnified for the major companies that have unfettered access to cash via bond sales.
Issuance of high-quality (i.e., investment-grade) bonds reached a record $2.83 trillion worldwide last year, a stunning 38% jump from 2008, according to data tracker Dealogic. Although governments were heavy borrowers, about half of that total raised was by big-name companies.
Who helped make the corporate rich even richer? You did -- if you're one of many Americans who pumped your savings into bond mutual funds. An unprecedented $375 billion poured into bond funds in 2009, providing a significant chunk of the capital that then flowed into newly issued bonds from companies such as General Electric Co., Pfizer Inc. and Dow Chemical Co.
And like any symbiotic relationship, this one has no good reason to end. While many investors now shun the stock market, their hunger for income may keep demand for corporate bonds strong in 2010 and beyond.
(Excerpt) Read more at latimes.com ...
THE GOVERNMENT DID
THE PRIVATE SECTOR DOES NOT HAVE THE KIND OF MONEY IT TAKES TO LE THEM GET AWAY WITH BILLIONS OF OLLARS WITHOUT GOING UNDER
ONLY THE GOVERNMENT HAS THE KIND OF MONEY AVAILABLE FOR THEM TO SCREW US SO BAD
Obama & Co. did.
Stop that. You know that the government is good and corporations are all evil. Rich people are evil. Success is bad.
Thomas Jefferson:
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
Actually, it only infuriates the greedy class warfare liberal types who sin by coveting what others have.
It would appear he went for only life sustaining necessities...beer, and nothing but beer.
This is America. We should be as energetic in cheering for companies who work hard and are successful as we are for chastising those who are criminal and break the rules.
What is WRONG with the ‘corporate rich’ getting richer???
They WORK for it.
YOU and I can WORK for it and become ‘corporate rich’ too.
The question is: Who is willing to sacrifice normal life and do what it TAKES to become successful in business???
This has to be one of the most self contradictory pieces I have read in a long time.
The banks got richer because companies borrowed from the bond market?
The Companies got richer because the average Joe has decided to loan the money to big companies?
I think the issue is the “rich” are getting richer BECAUSE the gov’t is providing the funds....from taxes...it’s not about working hard....
Excuse me? But which one of these mega corporations didn’t benefit from TARP? No, they got richer because the government STOLE our (the non CEO WORKING people) money and gave it to them to play with.
In a normal situation, I’d agree with you. Not in this one.
Alot of people hate on that guy never really figured out what he did was so terrible.
I absolutely loathe left wing progressive obsession with class, race, and sex. They love to polarize, divide & conquer.
I'm not sure of the story, but I think he was a looter and what he was looting was beer...but I may be mistaken.
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