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If the real goal here is to save jobs, this is all completely irrelevant.
by socalnate1 7y ago
If the real goal here is to save jobs, this is all completely irrelevant.
- skitout 7y agoIt is possible to save as many jobs with "more expensive money" when in comes to Private Equity firms - and that would be a better investment for the taxpayers
- zzleeper 7y agoCan we just do an expedited chapter 11, so the company is still functional when things come back online, but instead of the current shareholders you would have the current credit holders at the helm?
- socalnate1 7y agoWhy would you assume these companies would go bankrupt? In most cases they will just lay off a bunch of people (which is exactly what the legislation is designed to avoid).
- CPLX 7y agoIf the goal is to save jobs, eliminating the private equity business entirely might be the most effective solution.
- Pfhreak 7y agoHas PE had a history of net job gain, or at the very least saving the jobs that were already there? My impression, without any data on hand, is that PE firms tend to reduce the number of jobs overall.
- smabie 7y agoThe point of a business isn't to employ people, it's to make money. Often times PE firms are buying companies that are going to go out of business unless dramatic changes are made (like newspaper companies). I think we can all agree that cutting half the staff of a company is better than the company going out of business and everyone losing their jobs.
- TrackerFF 7y agoAs much crap as Michael Milken has gotten, I agreed what he said on junk bonds: Dollar by dollar, junk bonds did create a lot jobs. They funded risky businesses, in the same way venture capital does today. Problem arises when they are used in deceptive ways.