Keiser Report: Pirate Equity & Rate Cuts (E1418)

Max Keiser is not always MMT kosher as he wants to tie currency to gold, but this is an excellent video just the same.

Steve Bannon accusese China of unfair trading practices, but Western companies have been dumbing themselves down for decades. Twice as many private equity companies go bankrupt compared to share listed companies.

In the U.K Sainsburys owned all their own property, and an equity group starting buying up lots their shared, but they couldn't get enough to influence the Sainsburys board's decisions. This group realised that the company was worth far more than the asking price as it owned its own property, so their plan was to force the management to sell off the property and then lease it back, making one off massive profits even though in the future Sainsburys would be less competitive.

The equity group tried to influence the other shareholders to go along with their plan, but the Sainsburys board managed to fight them off, although it cost them a lot. Eventually, I guess, that feeds back through to higher prices and lower wages, so the public pays for it in the end

So, a private equity group was able to borrow money really cheap due to ultra low interest rates, then buy into a company and try to get it to sell off its assets to make a one off massive profit, after which it would sell the shares, pay back the banks, and then walk off with a bundle. No work, no effort, no designing things, no investment - just Robber Barrons. Therfore China leaves us behind, but they get the blame for it.

In this episode of the Keiser Report, Max and Stacy discuss how private equity – aka ‘pirate equity’ – has hollowed out the retail sector. Despite their assertions to the contrary, Wall Street firms have destroyed eight times as many retail jobs as they have created in the past decade. And Elizabeth Warren has a plan. In the second half, Max talks to Mitch Feierstein of PlanetPonzi.com about how many rate cuts we can expect before the end of the year, and whether or not the US will go negative just like Europe. They also discuss central banks buying up stocks.