So… what happens when the credit market tightens? Extremely leveraged companies go bankrupt and can’t pay lenders. But now it’s not banks that are lending, it’s Private Equity. Blackstone. They get pensions to invest, then do leveraged buyouts using a shit ton of leverage. Meaning they don’t even possess the money they are using to buy out companies, they just say they will have the money eventually.
Remember Enron? Ask chatgpt or copilot to compare and contrast Enron with Blackstone and you will see some very concerning similarities. They keep liabilities off the books so they don’t show how exposed they are. But tarrifs and this Moody’s downgrade are going to trigger another collapse like 2008 only this time it’s not the banks that taxpayers will bail out it’s PE and the pensions that invested in them
So… what happens when the credit market tightens? Extremely leveraged companies go bankrupt and can’t pay lenders. But now it’s not banks that are lending, it’s Private Equity. Blackstone. They get pensions to invest, then do leveraged buyouts using a shit ton of leverage. Meaning they don’t even possess the money they are using to buy out companies, they just say they will have the money eventually.
Remember Enron? Ask chatgpt or copilot to compare and contrast Enron with Blackstone and you will see some very concerning similarities. They keep liabilities off the books so they don’t show how exposed they are. But tarrifs and this Moody’s downgrade are going to trigger another collapse like 2008 only this time it’s not the banks that taxpayers will bail out it’s PE and the pensions that invested in them
The machine sycophant can’t answer any question honestly