James Coulter has a net worth of around $3 billion. He didnāt invent anything. He didnāt cure a disease. He didnāt build a product people love.
He got rich the old-fashioned private equity way: by buying companies with other peopleās money, loading them with debt, firing workers, and cashing out before everything collapses.
Meet the man who turned human suffering into a business model. Private equity is legalized looting dressed up in a nice suit. Hereās how it works:
You find a company thatās doing okay. Maybe it employs thousands of people. Maybe itās been around for decades. Maybe itās the backbone of a small townās economy.
Then you borrow a ton of money to buy it.
Hereās the trick: you donāt pay back that debt. The company does. You just bought a house and made the house pay the mortgage.
Now the company is drowning in debt it didnāt ask for. So what do you do? You cut costs. And by ācosts,ā we mean people. Their jobs. Their pensions. Their healthcare. Their dignity.
You pocket millions in fees just for showing up. You pay yourself dividends from the companyās cash reserves. And when you eventually sell or the company goes bankrupt, you walk away richer.
The workers? They get a cardboard box and a security escort
His name has been added to the Menu.
practically like romneyās bain capital.
And it is a big part why the quality of American manufacturers has plummeted. Because for that to work the company has to have a good reputation so the corporate raiders can leverage that to screw over customers and workers alike.
Pretty sure ChatGPT wrote this article, not sure how accurate any of this is when thereās no sources.
Written by AI or not, the facts arenāt wrong. Itās exactly how this shit works. We should be ending private equity companies.
Thereās a question of how to do that, or at least how to best stop destructive business practices, and related to that, how these strategies work and where the money is coming from. From the explanation given here it sounds like their answer is, the bank loaning the money gets ripped off and left with a worthless company. Which seems a little implausible and needs more explanation about why that is possible as a common trend. But since I keep seeing GPTisms, Iām thinking maybe that detail was slightly off in some important way, because the writing is LLM approximation bullshitting.
Anyway itās just frustrating because this topic is interesting to me but there isnāt any real information here that can reasonably be relied on.
I didnāt clock it as AI, but looking back I can see it as a distinct possibility. It does read like yet another explainer on how vulture capital works (assuming Iām using the right term there but not entirely sure).
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