How is selling shares in a money-losing corporation at outlandish valuations not the commoditization of fraud? The fraud has been normalized into a game of hoping that greater fools will be so enamored of the normalized fraud that they’ll take the IPO shares off your hands at ever-higher valuations until the fraud breaks down.
But by then, the instigators of the fraud–the IPO–have escaped with billions in gains and zero liability.How is private equity loading companies up with debt as a means of paying outlandish dividends to themselves not commoditized fraud?
How is paying dividends with debt rather than earnings not fraud? The net result of this fraud is the debt-burdened company eventually defaults on its debt, defrauding the investors who were suckered into the scam.But once again, the instigators of the fraud–private equity–have escaped with billions in gains and zero liability.