I heard a caller on Thom's re-run Memeorial Day show say we should call Private Equity, "PIRATE EQUITY" which Thom loved. So I googled it and found that "Proveloper" posted this clever description on the Forum a week ago. So I thought It would get a bit more exposure here.
Pirate Equity-AAARRRGH!! by Proveloper
Cap'n Romney takes over the company ship and loots the treasurey while making the employees walk the plank! Then sells the leak ridden hull to others hopefull they can keep it afloat. But alas, in the end the Sea of Red Ink is too rough, the only choice left being to guide her into the Bay of Bankruptcy and scuttle her in the shallows.
Thom also stressed that it is NOT true capitalism like Fox is trying to sell.
The OLD name for Private Equity until a while ago was Leveraged Buyout companies until LBO's got a bad name. The other name is Vulture Capitalism which is NOT VENTURE Capitalism. People for some reason get those 2 mixed up. Vulture Capitalism -BAD, Venture Capitalism- GOOD.
Vulture Capitalism is buying existing companies and firing the employees and/or stealing their pensions when the company declares bankrutcy.
Venture Capitalism is investing in a START-UP venture with capital to get it going.