Jew Asset-Stripping Returns With a Vengeance

[CrackSmokeRepublican]

Asset-Stripping Returns With a Vengeance
 

It's baaaaaack....

   Private-equity firms are adding debt to the companies they own in order to fund payouts to themselves, a controversial practice now reaching a record pace.

    Leonard Green & Partners LP, Bain Capital LLC and Carlyle Group LP are among the firms using the tactic, which rose in popularity before the financial crisis.

    In these deals, known as "dividend recapitalizations," private-equity-owned companies raise cash by issuing debt. The proceeds are distributed in the form of dividends to buyout groups.

Let's just call this what it is -- a screwing.

It's nothing other than a cynical version of arbitrage for the simple reason that it attempts to goad the market into providing a forward arbitraged level of cash "now" against prospective future operating earnings which the private equity shop takes today, leaving the execution risk with the debtholders.

It's clever and legal, but only works when you can find a bunch of rubes that will take on the risk at an undersized rate of return.  That, in turn, is stoked by interest-rate "policies" that are suppressive of risk-adjusted rates (ZIRP and QE anyone?) which Bernanke and others assert are all "positive" in their impact on the economy.

That latter assertion is a knowing lie; there is no such thing as a free lunch but there are plenty of people who hope that when you see a pretty face poking out from the under the sheets you'll immediately strip and jump in bed without pulling back the covers to ascertain whether what's there is actually a pretty girl!

These bets always eventually end in disaster for someone, and the PE firms that pull this crap are simply insuring that the disaster isn't theirs, it's yours.

That's real special, isn't it?

But is this something that should be prohibited?  I don't know.  There's a fairness issue here that rears its head, but then again, it's damn hard to swindle an honest man, isn't it?

http://market-ticker.org/akcs-www?post=212876

[FrankDialogue]

You know, CSR, you need to check out two books, if you haven't already: 'Den of Thieves' & 'Predators Ball', two books about the Jew takeover of Wall Street in the 80s (Michael Milken, Boesky, KKR etc)...Both might be available for online download...I have the hardback copy of the first...This was the real documented start of the modern era Jewish mega usury, like you're talking about...Also, many don't realize that 911 was also about MAJOR Yiddinski swindles that the whole event was a smokescreen for...No matter what politics are going on, it's always about a buck for the Zhids, bottom line.