PBS: Private Equity Runs & Wrecks America- Gretchen Morgenson, Pulitzer-Prize Winning Journalist

[appalachiablue]

In her new book, "These Are the Plunderers," financial journalist Gretchen Morgenson covers how elite Wall Street financiers are undermining the country's economy for their own benefit. She traces the history of corporate takeovers and private equity firms that cause newly- acquired companies to be burdened with debt, known as leveraged buyouts and corporate raiders in the 1980s and 1990s.

Morgenson says it's a growing business model that's pernicious, extracts wealth and widens the wealth gap. Prominent PE firms include BlackRock, the Carlyle Group, Bain Capital and Blackstone. PE is involved in major economic sectors including Retail, Fast Food, Health Care, Hospitals, Emergency Room Staffing Firms, Physicians Practices, Nursing Homes and Real Estate, Apartments and single family homes.
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- NPR, How private equity firms are widening the income gap in the U.S., April 26, 2023. Fresh Air. 35-Min. Listen. Financial journalist Gretchen Morgenson explains how private equity firms buy out companies, then lay off employees and cut costs in order to expand profits. Her new book is These are the Plunderers... https://www.npr.org/2023/04/26/1172164997/how-private-equity-firms-are-widening-the-income-gap-in-the-u-s
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- The American Prospect: "Days of Plunder," Two new books call ‘private equity’ what it actually is, but neither offers much hope for emancipation from our eternal hostile takeover. By Maureen Tack, June 2, 2023,
https://prospect.org/culture/books/2023-06-02-days-of-plunder-morgenson-rosner-ballou-review/

[KT2000]

1. Predation is now acceptable

as a business model. It used to be hidden but is now justified as good business.

[SWBTATTReg]

2. YES! These people move in and of course say that they are opening up the company's to its

hidden wealth, etc. when the company already knows this fact. All it is, is a barely concealed robbery of the Companys' prized assets and then they leave the tattered shell of the company still there, leaving few of the employees still remain to struggle w/ the tattered remains of the company's assets and employees' 401s, etc., often a path to a bankruptcy. And they call this 'capitalism'. Makes me throw up. By now in my somewhat long life, I have only heard of only a very few truly benevolent companies that included their employees 100% in the whole capital structure of the company, leaving it impossible for outsiders to swoop in and buy up the company.

Beware folks, these vultures in white ties aren't to be trusted and should instead, be shown the front door immediately.

[appalachiablue]

3. Vulture capitalism is exactly what it is, sickening.

[pfitz59]

4. The death of Pacific Lumber Company

and its prized redwood trees is a prime example.