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2 Responses to “Is Private Equity Bad for Economy?”

  1. Sircornflakes says:

    Private Equity is good for the economy. It generates return for its investors and targets inefficient firms.

    Now, the targeting of inefficient firms can result in lost jobs and/ or benefits. Hopefully, on balance, more jobs are created through successful investing in an array of firms.

    That said, I don’t see where working in private sector PE prepares you to be POTUS. I’m told over and over that Reagan was a great POTUS and I don’t recall his private sector business acumen.

    If I had a talent for creating jobs in the private sector, seems to me that I’d stay in the private sector creating jobs rather than running for POTUS where I’m constantly told that government doesn’t create jobs.

  2. VennData says:

    Anybody taking a shot is not bad for the economy. If you want to be a dick and fire people (that often need it, though might not deserve it) and leverage up some assets and flip it, if you can. You will not always win, and sometimes you will look bad. If you cannot accumulate capital as you continue to take shots, your “formula” will not pay off. For example VC’s on average have had poor returns for the last twenty years.

    http://www.topix.com/forum/vc/T39ADLN1IVDRCTQ6C

    Any business person who hires, fires, re-allocates capital will look like a dick. Just as any politician who is trying to get people healthcare will upset the people who have their capital allocated in such a way as to NOT benefit will also look like a dick… to those in the status quo. The issue is will those decisions that the dick makes, those tough decisions like killing Osama bin Laden or lowering payroll taxes … or even allowing temporary tax cuts to expire be good or bad for us in the long haul? Would Romney make the “right dick moves? Obama has.