On Thu, Jan 29, 2009 at 6:51 PM, michael perelman
<[email protected]> wrote:
> Senator Max Baucus got $26 billion for private equity companies -- the
> vultures that buy companies, load them up with debt, collect exorbitant
> fees, and then try to sell them to the unsuspecting public.
>


Hi Michael,
I hate the private equity criminals as much as anyone, but I don't
think the above is accurate. What the PE industry gets is a tax
deferral of $26B, whose ultimate cost may be much smaller.

>From the WSJ article: "The Joint Committee on Taxation estimates the
proposal would cost the government roughly $26 billion over the next
three years. Most of that cost would be recovered over the following
seven years."

Also this may very well minimize job losses by allowing PE portfolio
companies to renegotiate debt with their bond-holders.
-raghu.

--
In Soviet Russia, the television watches YOU!
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l

Reply via email to