Copypasta of my [email protected] comment:

This person doesn’t understand what Private Equity (PE) is actually doing, and why it’s not going away until the economic system collapses or the government steps in (which isn’t easy given that the beneficiaries of PE have the politicians in their pocket).

Private Equity colludes with the private banks (which control the Federal Reserve and have largely captured the Treasury) to acquire companies using almost no initial capital. They then strip those companies of as much value as they can and then sell the depleted companies to lower-rung PEs, which squeeze out what little value is left, and so on until the companies default from the highly-leveraged debt PE saddles them with. These are asset stripping schemes.

This YouTuber is conflating the performance of PE firms with the performance of the companies acquired. The acquired companies perform poorly because PE sucks the value out of them and gives it to their owners & investors.

Michael Hudson and Radikha Desai have explained this many times, together on their show and separately elsewhere.

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