Why Private Equity Is EVIL And How To Destroy It | Krystal Kyle & Friends

Krystal and Kyle talk with American Prospect Editor David Dayen about what Private Equity is and how to destroy it

[tinasmith]

Isn't it strange how our govt is run in such an un-business like fashion? When I go to the grocery store I can't buy the hundred gallons of water they have on the shelves. They limit me to four. But private equity has NO limits on what it's allowed to buy, and bill gates just gets to become the largest farmer in the US without anyone batting an eye. There's something really strange about that.

[weignerleigner]

It’s not really private equity it’s more of our modern monetary system. There’s nothing wrong with private investment in fact we should encourage it, it’s when you get basically free money at the taxpayers expense and you get politicians to write laws that allow you to get away with murder. That’s the real issue. And when these people lose money they should suffer the consequences they shouldn’t be bailed out.

[ericwhite]

I don't disagree with the premise, but its a bit odd not to bring up the fact that the Federal Reserve has left interest rates at near ZERO for 14 years. Its free money. Banks have rates at zero so savings is useless, so few have any ability to save anything because inflation steals it and yes, inflation is caused by excess money in the system Kyle (fire your economist friends), as well as supply/demand, and other forces that effect price (classically that is really more cost of living, and inflation is just money though) and thus have little choice other than to invest in stocks (by a lottery ticket, gamble), and since people don't have a clue what to do in the market, Wallstreet steals their money instead. The truth is if the Fed raised rates, the interest on the Federal, and world debt that ballooned out of control during this low rate environment would cost a SHIT TON of money to service that debt, and would collapse the economy. So, they will eventually return to print print print as they just don't have a choice. The right answer would be to go back in time and not let rates remain so low, EVER. Its too late though and it is damned if you do, and damned if you don't. To solve the problem here, you simply can't have all that nearly free money in the system because THAT is what this private equity group uses for its "schemes". BTW we don't live in a free market. A free market would have let all the companies that "failed" over the last 50 years instead of bailing them out "for the common good". This is a big thing that has promoted a lot of the bad behavior today. Anti-trust is good as well, but it can't just be that and to illustrate that, how would you propose breaking up Apple? Split the phone in half? Tech is a very difficult beat to enforce anti-trust on, but there are things that could be done, like Instagram/Facebook should have been stopped.

[doctore]

without the federal reserve to print the money to support the loans the financial resources would not be available

[andy]

Saw this first hand. Reviewed the financial statements of a company that wanted funding for something. The parent company that bough them out used the acquired company as a debt dumping grounds. Credit report came back essentially saying do not lend had the lowest possible score.

[scrimshaw]

Praying for Kyle's quick recovery from monkey pox

[craigforest]

Kyle-“That sounds glorious”
*(Also Kyle- Has zero understanding of what was just said.)*

[oldskool]

Some good news is that Kim Iversen has left Rising and is doing her own show again. As the moderate voice that kept Rising relevant after Saagar left I hope she gets her own followers back plus tons more as she begins her own show again.

[toddsmart]

This guy is clueless to what private equity is.

[fairtreatment]

Private equity doesn’t grab and smash every company they can find. The stupidity of that statement invalidates the whole interview.

[stevenrizzo]

Look at apartment buildings in the US. All getting bought by private equity groups. Jacking up the prices using their "algorithms", cutting costs by getting rid of front desk and security, offering terrible customer service, replacing any type of humanity with corporate policies. Then you think, "Oh I will just move to this other building", which ends up having the same terrible ownership and structure.

[antoniov]

This video is so incredibly clueless and misinformed about the fundamentals of PE. I understand the bias against market and the socialist agenda of Krystal and of the speaker, but a basic understanding of markets and the companies’ functioning would help to formulate more intelligent criticism..

[zufalllx]

Oh, $5 a month? Is that all? Are you seeking private equity?

[SolveFixBuild]

This entire discussion exposes a fundamental misunderstanding by the speakers about how companies get started.

[samalexander]

This is shit reporting. Sorry guys, your lack of understanding on how “private equity” works is insane. They can’t get loans unless there is someone willing to lend them money. People won’t be willing to lend money (or contribute capital) unless the business will generate profits. They will take action to juice profits if possible (which maybe should have been the focus here). This reporting is wack.

[johnp]

Love breaking points, but guys, this discussion is ignorant. There are legitimate reasons private equity exists. PE provides a critical source of capital and liquidity in the private market for businesses of all shapes and sizes that need that capital to grow, hire, invest, acquire, etc. Yes, private equity uses leverage, but so do people when they buy a house. There are plenty of reasons to criticize PE, but please bring on a more educated financier to do so.

[smokerx]

this is what was done to toys R us. and why it went under. its not like kids stopped wanting toys. it was destroyed in this exact way.

[masterbulgokov]

Eliminating private equity is a fool's dream. More power to you, but that Pandora's box can never be shut.

[zufalllx]

No one in this video understands private equity. If that's all it takes to have a successful YouTube channel, I'm about to start one and then go on to run off about things that I don't fully understand. Seems to be a winning combination

[jokern]

When can we expect to see Kim Iverson on BP?
Seems like a good fit