richardhutnik said:
Kasz216 said:
richardhutnik said:
SamuelRSmith said:
Ail said:
SamuelRSmith said:
Sorry, but isn't the point of Bain Capital to be a venture capitalist? That is, extremely high risk. |
Bain is in private equity, not venture capital. It is very different...
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Actually, I'm pretty sure Bain does dabble in venture. I remember during the GOP primaries, Gingrich and the ilk dubbed it "vulture capitalist".
Because, you know, the GOP are the party who hates capi- wait, what?
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Private equity is vulture capitalism. At least parts of it is. It isn't there to fix anything, but come into sick companies and reorder it to try to make money for people involved, particularly the firm setting up the deal. There is also raising capital for a startup to, and get things going. In all it, you structure it so no matter what happens, you make money. This could be gutting everything and selling it for parts. In this, nothing is on trying to succeed, and grow the economy, just maximize profits.
Connected a bit with this is a recent conversation I had with a former business partner, who is currently in trying to get people money. He is lamenting what he is doing now, and wondering if he is actually helping. He now laments getting some guy money for a business, getting investors, and then finding out that the business isn't likely to make it. He says he made a mess out of more than one person's lives. He is now thinking of getting an R.V, leaving where he is, and going to mine for gold. Even in this case here, his attempt to get a busines going is causing more harm than if he didn't do anything. And he has lawsuits and creditors breathing down his neck. He feels entrapped in his situation.
Count all this as a reevaluations of what hung around what was remotely considered a social contract. People are wondering what this "American dream" is that people thought they understood and it looks very risky now. No more it seems like you can trust by play by certain rules, don't cause trouble, and get a middle class lifestyle. The GOP primaries went into this also, with Mitt as the focus.
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I would agree that it's vulture capitalism...
in that just like vultures it's something that gets bashed by people despite it being overwhelmingly a good thing who's existence helps the general ecosystems it inhabits despite the fact that both are just worried about their own health and survivial.
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Back to myself, because I am not sure how to change the font here...
Well, saying Bain was just vulture capitalism can be a bit overstated. There was some triage surgery going on also, but there was also the gutting it up for more parts. The problem with it is if that is where bulk of wealth is generated, you have a sick economy.
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First off... the surgery makes more then the gutting, so again, i don't see the problem there, since it's in the best interests to save the company if possible, and the end worst result is that it dies anyway.
Secondly, as for your article... seems like a bit of a correlation, Causation arguement there.
Is it a problem from the banking sector growing too much? Or is the banking sector growing as a percentage because everything else isn't growing as much?
Credit imporving without the rest of the economy improving with it would be a sign of malinvestment by the people getting the loans would it not?
Though really even then I'd look at the number 1 country on their list. It's canada. Canada's economy has been doing... pretty fine.
The big "Gotcha" things that make this research work are essentially the fact that we had the GFC, and countries with banks have been hit hard, because well, that tends to happen when you have a lot of banks, during a banking crisis. Countries like Spain and Ireland.
Unless you're out of the loop or found other ways around it.
The thing about the BIS is, it's essentially the Central Bank for Central Banks. For a long time the EU pretty much ran the place and put in relativly lax holding requirements based on what everyone else wanted... (US/UN.)
Then the financial crisis hit... and now the BIS is advocating bank discretion, because the central bank's weren't properly set up... and people are sick of paying out countries.
It's just another shot at Spain/Greece/Ireland etc.
