07 LAT editorial explains how the PE firms like Bain are destroying America

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Read and learn more about how the attitude toward capitalism represented by Bain is tearing down our county.

http://www.latimes.com/news/opinion/la-op-candaele12aug12,0,231202.story

"Moreover, because high amounts of debt are used in buyout strategies, there is a fear that as debt financing becomes more risky -- as it has in recent weeks -- the financial stability of the overall economy will be undermined. If the goal is to strip and flip a company in the shortest time -- not unlike what has happened in the housing market -- the long-term planning, investment and stewardship of businesses will disappear. While fund managers pocket the profits, workers and communities suffer the consequences of these highly leveraged transactions.

[salin]

1. Good time to pull this out.

thanks for the link.

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2. Thanks. Most people don't understand how private equity works

About 10 years ago, a good friend went off on a rant about how private equity is nothing but trashing companies for the benefit of a few rich people, and a lot of what she sad went right over my head, even though I have a degree in finance.

Now, I realize we as Americans need to understand this so we can understand Romney's approach to "creating wealth". Seriously. This isn't some picky little point - the guy made money slashing and burning.