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  1. Abhorsen

    Hedge Funds, Vulture Capitalism, and The Decay of Rural America

    That's not quite how the LBO works. Yes, the debt given to the company, but with the promise to use the companies cash flow to pay for it, and the investors expect that the debt will be paid back. Basically, if you see a company that isn't living up to it's potential, but can't afford it, you...
  2. Abhorsen

    Hedge Funds, Vulture Capitalism, and The Decay of Rural America

    The thing would have died anyway though. If a company doesn't outsource to the overseas, then another company will and push the first one out of business. Keeping any fraction of the original structure and jobs long-term should be interpreted as a win. The other, more hidden benefit of...
  3. Abhorsen

    Hedge Funds, Vulture Capitalism, and The Decay of Rural America

    That's what I said, just phrased as if this were some great sin. The thing about companies that might or might not be salvageable, is that if they're being sold, the current owner doesn't believe they are salvageable, or they would keep it and make more money fixing it. Those new middle managers...
  4. Abhorsen

    Hedge Funds, Vulture Capitalism, and The Decay of Rural America

    I'll be honest, I really don't like Tucker. If you ignore his culture views, his economics is basically socialism. This destruction of 'distressed' companies is a good thing. It's part of the process of creative destruction, where old companies who can't keep up must die off. This die off is a...
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