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that's really beautiful.

The NYT had a very nice series on the defunct US mattress manufacturing company Simmons which finally collapsed after a private capital concern purchased the firm, using the firms own debt, and then paid itself a huge fee with more debt, and then declared bankruptcy. The bond market, with its usual good sense, ate those bond issues up, as if they were delicious.

by rootless2 on Sun Jun 6th, 2010 at 02:15:26 PM EST
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That process has been going on for at least 30 years.  The next step was to issue an IPO so the looters could walk away and let the stockholders take the inevitable hit.  

The 'Greater Fool' Theory in action.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Mon Jun 7th, 2010 at 12:26:55 PM EST
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the US needs a postal savings bank but it also needs a federal pension fund so that at least money sunk into these destructive enterprises is not risking retirees savings.
by rootless2 on Mon Jun 7th, 2010 at 04:11:55 PM EST
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I don't see how a federal federal pension fund is superior to current income financing. After all it's not like a society as a whole can save.
by generic on Mon Jun 7th, 2010 at 04:39:26 PM EST
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Currently, there are billions and billions of pensions from unions, public sector workers, and even a few others, that are funneled into worthless junk by financial advisors.

For example, the California public workers pension fund just threw away $500M by participating in an insanely leveraged scheme to empty one of Manhattan's last middle class housing complexes and turn it into luxury housing.

by rootless2 on Mon Jun 7th, 2010 at 08:27:00 PM EST
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