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...so what wrongdoing did the banks do, exactly? Told another way, a failing company was headed towards bankruptcy, until the banks stepped in and saved the day
by gregw134 13y ago
...so what wrongdoing did the banks do, exactly? Told another way, a failing company was headed towards bankruptcy, until the banks stepped in and saved the day by recapitalizing the company, saving thousands of jobs and a good brand in the process.
- justincormack 13y agoIt was failing because of the amount of debt it had loaded up in it in the previous buyout.
- michaelfeathers 13y agoYes, I think the gist of the article is that interest in outcomes evaporates with financing and consolidation. The creative destruction of capitalism becomes capricious destruction under those circumstances.
- gregw134 13y agoThat's what he's saying, and it might be true, but he hasn't demonstrated that in the article. He's done all of this research which supposedly demonstrates that Guitar Center is going to be run into the ground, but he never actually goes anywhere with his research. He's just using this as an opportunity to gripe about banks, which is fine, but he shouldn't have fluffed up his vitriol by pretending like he has a scoop.
- rayiner 13y agoHe's not griping about banks, but rather private equity firms.
- bsder 13y agoIt's actually worse than that. Consider the fact that all of this financial crap is propping up Guitar Center who is undercutting all the local shops and driving them out of business. So, until Guitar Center actually collapses, it is actually harming the economy because its existence is preventing the formation of companies that might actually make a profit.