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The more amusing (or disturbing thing) is that we have created an environment where, practically speaking, investors have less risk than everyone else. We were
by nonameiguess 5y ago
The more amusing (or disturbing thing) is that we have created an environment where, practically speaking, investors have less risk than everyone else. We were just hit with one of the largest global disasters of the past century last year and the immediate reaction was flood equity markets with $3 trillion to prop up financial markets. Owners of capital cannot lose.
Even before these last few years of craziness, what I will never be able to get out of my mind is the story of Frank McCourt. I'm a lifelong Los Angeles Dodgers fan. He bought the team from Fox in 2004 and proceeded to treat a storied franchise in the nation's second largest city like it was his personal credit card. He didn't even use his own money to make the purchase. It was entirely with loans. He then proceeded to spend 8 years gradually bankrupting the organization until the league kicked him out and forced him to sell.
What was his loss? Nothing. The team sold for 8 times what he originally paid, not because of anything he had done, but just because television contracts for the entire league had become so much more lucrative over that time. The man put up $0 of his own money and made $2 billion by being one of the worst team owners of all time and making the organization he owned literally bankrupt.
I will never again in my life accept these econ theory gibberish about all the "risk" faced by business owners. If you own a salon or a restaurant or something, fine, I accept you might actually be out on the street. But if you're the right class of person that the banking system has accepted into the club, you can get infinite loans to buy whatever you want with no collateral, drive a business into the ground while spending the bulk of your time with hookers and blow, and make out with billions anyway.
- KirillPanov 5y agoThe Times 03/Jan/2009 Chancellor on brink of second bailout for banks
- nuclearnice1 5y agoSaul Katz is the east coast Frank McCourt. Many years of mismanaging the Mets. Suspicious involvement with Bernie Madoff. All floated a long with generous debt finance. Sold the team last year for $2.4B
- beckingz 5y agoThe best part is that he sold the franchise and donated $100M to Georgetown University so that his wife wouldn't get as much of the divorce proceedings.
- sombremesa 5y ago> The team sold for 8 times what he originally paid, not because of anything he had done, but just because television contracts for the entire league had become so much more lucrative over that time. And what about your part in this play? The brand is valuable because of its fans. I assume you continued to support this brand, and by extension, this man you seem to despise. People like yourself directly contributed to his wealth — you might just as well not have.
- philosopher1234 5y agoAnd thus… the system isn’t flawed? We can criticize the system and the rich without needing to apologize for it.
- deleted 5y ago[deleted]
- sombremesa 5y agoYou’re right. The “system” is flawed. The poor knowingly enrich the wealthy and then whine about it. Seems to be happening more and more nowadays.
- bradlys 5y agoWhat is the alternative? Give up on all sports teams? Give up on all goods altogether? I think the point people are making is that the system in general is so rigged and there are so many bad actors that it’s basically impossible to find something else that is more ethically managed while getting a very similar good/service/whatever. Do I support the US giving Israel billions every year that then gets used to kill and rule over Palestinians? Nope but I still have to pay my taxes! If I decided to not pay because of that, I’d go to jail. So even though I’d like to not support such a system, the effects of not supporting such a system are too much of a cost for myself. (In the same way for others with goods or services or whatever - penalty for non-participation in whatever is too high)
- deleted 5y ago