dtblount

Private Equity Deals Wane

"Private equity and the Fed have the same goal: To drain wealth from the poor/middle class and re-distribute it to the rich."

That really might be the most ridiculous thing I have read in quite some time. I'm not sure which specific Marxist philosophy you follow, but the Fed certainly wasn't established to transfer wealth away from the middle class.

Section 2a of the Federal Reserve Act says..."The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."

Those goals certainly seem like they would benefit all of society to me.

As for your attack on Private Equity firms, it is advantageous for banks to raise capital from PE firms simply because many of them are flush with cash and have orchestrated turnarounds before.

Yes, some PE deals have seen a level of corporate plundering, but nothing is pure. The vast majority of PE deals make money and work because the new management runs the company by the numbers and they manage risk better than the previous operators...which is something that always works and will always make money...

Please, spend your time learning basic economic and financial principles rather than reading and commenting on populist conspiracy theories.


Cheers