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Post by Deleted on Jul 26, 2013 10:13:36 GMT -5
Just curious why you think venture capitalism is plundering. Because of what companies like Bain Capital sometimes do: Josh Kosman described Bain Capital as "notorious for its failure to plow profits back into its businesses," being the first large private-equity firm to derive a large fraction of its revenues from corporate dividends and other distributions. The revenue potential of this strategy, which may "starve" a company of capital,[141] was increased by a 1970s court ruling that allowed companies to consider the entire fair-market value of the company, instead of only their "hard assets", in determining how much money was available to pay dividends.[142] In at least some instances, companies acquired by Bain borrowed money in order to increase their dividend payments, ultimately leading to the collapse of what had been financially stable businesses. en.wikipedia.org/wiki/Bain_Capital
Buying up a company, milking it of assets until it goes bankrupt = pirates I would be in agreement with you about Bain Capital, but that doesn't make all venture capitalism bad.
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Post by Deleted on Jul 26, 2013 10:19:15 GMT -5
Because of what companies like Bain Capital sometimes do: Josh Kosman described Bain Capital as "notorious for its failure to plow profits back into its businesses," being the first large private-equity firm to derive a large fraction of its revenues from corporate dividends and other distributions. The revenue potential of this strategy, which may "starve" a company of capital,[141] was increased by a 1970s court ruling that allowed companies to consider the entire fair-market value of the company, instead of only their "hard assets", in determining how much money was available to pay dividends.[142] In at least some instances, companies acquired by Bain borrowed money in order to increase their dividend payments, ultimately leading to the collapse of what had been financially stable businesses. en.wikipedia.org/wiki/Bain_Capital
Buying up a company, milking it of assets until it goes bankrupt = pirates i think that vulture capitalism is a good term for it. except vultures are generally not responsible for killing off their food. Vulture capitalism not a good term, IMHO of course. Vultures only eat things that are dead and rotten. No venture capitaist will acquire a failed business operation. (most cases)
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Jul 26, 2013 12:00:16 GMT -5
Bain capital is not a problem of the free market. It is the EXACT OPPOSITE. Bain capital is a product of statism and crony capitalism. It's the product of a deliberately complicated, highly regulated market where the government picks winners and losers, and insiders get to know the system, and exploit it.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Jul 26, 2013 12:04:05 GMT -5
correct. but you are assuming that the rate is risk weighted. it isn't. the risk is actually minimal. In that case you should start up your own low-rate loan business and make a killing. That's exactly what should happen in a free market, isn't it? If someone can really charge 2000% interest, you'd think you could find someone who'd settle for a measly 1000% or even 100%. The rates for these services are set by the market.
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formerroomate99
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Post by formerroomate99 on Jul 26, 2013 12:04:23 GMT -5
From the paragraph above, it sounds like the companies were already being run by priates.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Jul 26, 2013 12:08:15 GMT -5
Um, you realize you're actually making the point I was making- "fines" are just another form of plunder by government. Of course Barclays is going to fight this nonsense. Fines are government plunder? If a company violates federal regulations against market manipulation, what kind of punishment should there be? Or do we just congratulate the manipulators for doing a great job squeezing as much profit out of those idiot utility customers? Don't answer that, I think I know... You really do not understand the ways in which government regulations facilitate market manipulation.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Jul 26, 2013 12:24:45 GMT -5
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Jul 26, 2013 12:28:48 GMT -5
Because if you have no intellectual foundation for understanding individual liberty, and it's inextricable link to private property ownership- you really have no background with which you can make an argument against it. I'm convinced that we now live in such a low-information society, that so many are so ignorant- or worse, ill informed "the know so much that isn't so" to paraphrase Reagan, that we have to start over educating a generation that knows liberty intimately because once a person is enlightened, they'll never submit to the slave state.
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djAdvocate
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Post by djAdvocate on Jul 26, 2013 13:38:00 GMT -5
i think that vulture capitalism is a good term for it. except vultures are generally not responsible for killing off their food. Vulture capitalism not a good term, IMHO of course. Vultures only eat things that are dead and rotten. No venture capitaist will acquire a failed business operation. (most cases) as i said, vultures don't actively kill off their prey. other than that, i think it fits what Bain and others do to a T.
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djAdvocate
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Post by djAdvocate on Jul 26, 2013 13:43:19 GMT -5
no. Locke held that property is privately "ownable" to the degree that human effort goes into making it. thus, he saw land and resources as commonly owned, things like timber owned by both public and private interests, and things like works of art being owned entirely by their creators. where Rothbard and others went wrong (imo) is treating all things as commodities, including human beings.
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happyhoix
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Post by happyhoix on Jul 29, 2013 7:38:53 GMT -5
Paul I don't agree with 99% of what you say, but I have to admit, I admire your steadfast belief that the world would be a better place if you could only educate the rest of the country into believing what you believe.
Personally, I think, human beings being the contrary and argumentative creatures that we are, there is no amount of education, brainwashing, subliminal messaging, etc that would ever get everyone in this country to agree on anything. I don't think it's a lack of knowledge, it's that we don't share the same view of what government should be.
But it's nice you think you could do it.
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