The Bill Comes Due - Acquisitions Funded by Debt

This story is precious, in the New York Times article, Debt Linked to Buyouts Tightens the Economic Vise , they reveal that private equity firms bought out various companies on debt which is now coming due.

Private equity firms embarked on one of the biggest spending sprees in corporate history for nearly three years, using borrowed money to gobble up huge swaths of industries and some of the biggest names — Neiman Marcus, Metro-Goldwyn-Mayer and Toys “R” Us.

The new owners then saddled the companies with the billions of dollars of debt used to buy them. But now many of the loans and bonds sold to finance the deals are about to come due at the worst possible time.

The movie Wall Street II - Bloodthirsty Raiders Arise will be soon to follow. No doubt Michael Douglas will reprise his role as the reformed greed is good guru now a talking head on cable news.

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Making my wife's soap look true to life

Isn't this how Jaebo fell out of Abbot control and into the Chancelor portfolio on The Young and The Restless?

When will these people get the idea that the best way to run a business is WITHOUT resorting to excessive debt?

Maximum jobs, not maximum profits.