Posted on 01/21/2020 7:02:52 PM PST by MagillaX
Fox News Host Tucker Carlson dedicated a segment of his show Tuesday night to torching the Wall Street billionaire Paul Singer. Carlson’s show featured an investigation into how hedge funds, like the the one Singer manages, have destroyed American towns and economies for the sake of lining their pockets.
Carlson described how Singer and his hedge fund Elliott Management has made billions of dollars from their style of “vulture capitalism,” exploiting financially distressed countries and American companies.
“Elliott Management has made billions by buying large stakes in American companies, then firing workings, driving up short-term share prices, and in some cases taking government bailouts,” he said.
(Excerpt) Read more at thefederalist.com ...
This is emphatically not vulture capitalism, it is
VULTURE MONOPOLISM
We need to introduce the term MONOPOLISM to the general public and tar BANKS, BANKERS, BANKING with it side to side, wall to wall.
What market is it exactly that Elliott Mangement monopolizes?
Romney’s Bain Capital engaged in this type of behavior also.
His hedge fund bought a significant interest in Cabela’s (mail order and then stick-and-brick sporting goods retailer) and made huge profits by forcing a sale of the company to Bass Pro Shops. Even though before the sale Cabela’s was a healthy company making a reported profit of $2 billion/yr. The sale devastated the town of Sydney, NE, the former headquarters of Cabala’s. I think there is a detailed video on Youtube that tells the story in detail.
But, but, but... it is all just good clean capitalism.
/s if I need it.
I’m sure no mogul but I did run a company once. Some of the troops came to me with a money making deal and I rejected the proposal. They were more than just a little angry. After a cool down period I took them to lunch and told them that not all business is good business or even business that I want because for my decisions I have to live with the consequences.
Large hedge are using super low-interest Federal Reserve money to buy out private (and public) firms, burden them with debt, and pay themselves huge bonuses. Its a problem created and made worse by the Federal Reserve and our fiat money system.
As a supplier, I find such companies to be leeches. To service the massive debt they put on companies, they squeeze suppliers, to the point where one is forced to cut quality and get pushed overseas.
And if they don’t get the cash flows, , they declare bankruptcy - to screw suppliers, workers, and their creditors.
Its gotten to the point where if a customer of ours is bought out by a hedge fund, I start to look and see if we can diversify away from them.
Bkmk Paul Singer
For l8tr
Didn’t Bain Capital work the same way when Mitt Romney was there?
WALL STREET SOCIALISM = Hedge Fund
I don't think that is accurate.
Hedge funds and LBO funds have to use public or private debt markets just like everyone else.
The only folks that have access to Fed money are member banks.
I have financed some LBO's in my career and am pretty familiar with how they are still funded in today's financial environment.
You are correct - hedge funds can not borrow direct from the Federal Reserve, only primary dealers can. Although there is debate now if recent massive Fed “Repo” operations are going to hedge funds, through hedge fund derivatives counter-parties at JP Morgan, etc... (but that’s a different question).
But with Fed funds rate at 1.55% and 30 year treasury at approx. 2.2%, there is a tidal wave of cheap money available to them.
He jokingly accused me of being a religious (which I was) and/or being a liberal (which he knew I wasn't).
I told him it would come back to haunt him if he ever decided to get into politics after he retired.
BTW, the companies which my LBO clients bought out were in trouble (due to both mismanagement and shifting economics) and these workers were eventually going to face unemployment anyway. My friend could have looked like a real hero if he had had a little foresight. And that would have given him a leg up in his governors' race...at least on that issue.
What market is it then that Bass Pro Shops monopolizes?
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