“It’s all just debt!?” 🔫 “Always has been”
Sounds like private equity isnt an investment, its just a tool to extract value from a company without actually increasing any productivity in the market.
If I take a loan and then another loan to pay the previous loan and repeat I would be called a criminal and a scammer. But apparently it's ok for these people
I don't understand why these funds are allowed to file bankruptcy on parts of themselves without the whole fund having to go bankrupt. It is clearly just stealing from the lender even though they still have the loaned money.
The biggest catch is illiquidity. Your money gets locked up for a very long time – often 5, 7, even 10+ years. You can't just sell it when you want, Also, less transparency. Private companies don't have the same public reporting requirements. It's harder for an individual to know their true value, unlike a publicly traded company
Lemme tell ya, every crafter lady in the US knows about private equity now after the Joann's debacle
I don't think regular people have a problem with rich people gambling away their fortunes. The issue is that, whenever they lose (and that is a "when", not an "if"), that somehow turns into everybody else's problem. I believe regulation should focus around not letting rich people pass their losses "down the pyramid", sort of speak.
My father is a financial advisor and he says the number 1 sign to indicate that you should pull any monetary support out from a company is if you ever hear that it got bought by a private equity firm. 9/10 times that company will either go under, or will stop being the same type of company you initially bought into to begin with in a little under 3 yrs.
a few days ago I finished a few books on the 2008 financial crisis, it really amazes me how the US continues to find new ways to make bubbles, every other dollar dependent economy willingly or unwillingly gets dragged into the popping ceremony.
I'm increasingly convinced that essentially ALL finance is just a ponzi scheme atop another ponzi scheme, etc. It's just debt, leverage and speculative value ALLLLLLL the way down. Which intuitively makes sense in a way - finance is an entire industry built on shuffling numbers around and not based on producing any actual value in the world.
What I love about this channel, is that it overloads me with information, and I think the video is done, then he busts out "now it time to learn how money works."
Private equity is like getting drunk and someone else gets the hangover. Loved the DBZ fusion dance at 09:09 😂🤣
The amount of time the “flashback soldier image” is one screen this video is comedic, and well justified
Leverage on top of leverage, I've seen this one before.
The system is collapsing. Life is too unaffordable and all politicians say is that we are "lazy" for not having 3 jobs. We are burned out!!!
Private equity is a sucker investment these days. It’s for rich people who think they’re getting a deal when they’re actually getting ripped off 😂
The fundamental problem is those in charge of taking out these loans are not held responsible for their actions. Anyone would take out infinite loans if they would never have to pay them back.
PE bought a similar family owned business , next to the family owner business i bought last year. Theyve now had to lay off quite a few guys. Blows my mind they could manage a profitable company so bad.
We had a private equity firm buy my company. They stuck us and bled us dry. We all lost our jobs after a year and a half, and they are probably going to declare bankruptcy.
@HowMoneyWorks