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182 points tencentshill | 1 comments | | HN request time: 0.247s | source
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siliconc0w ◴[] No.45066429[source]
PE is essentially an active exploitation of the laws. I think you'd want to figure out a way to ensure there are long term incentives like requiring a 10x holding period or face very high short-term taxes for 'flipping' companies, similar to stocks. If a company fails any 'performance fees' or other such looting of the company should be forfeited and returned to creditors/customers/employees.
replies(1): >>45066548 #
RobRivera ◴[] No.45066548[source]
> returned to creditors/customers/employees

I appreciate the sentiment, however it should really be clarified, for the purposes of productive dialogue, that employees and customers do not own a business. Businesses are for-profit and have a balance sheet just like everyone else, and creditors and minority shareholders have a responsibility in the ecosystem.

A creditor has a due-diligence obligation to determine credit worthiness, and a recent change in ownership could be part of that. Noone forces a creditor to give a loan.

In any non-public share ownership of a company, the shareholder has agency to manage their holdings in the company, and if they are bearish, they should sell.

Now the real grift is PE use of regulatory capture of a consumer. Consumers do not have much choice in the world of healthcare/hospice care.

In that sense, the government has the power of the pen to adjust the law.

I dont find any value in echoing a false entitlement to customers amd employees.

replies(1): >>45070168 #
1. Der_Einzige ◴[] No.45070168[source]
Socialism is popular with gen Z. They will nationalize and expropriate.